Notes

Asia wood pellet market evaluation as well as prediction<br>
In Asia, Japan and also Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia as well as Malaysia are primarily wood pellets merchants. As the wood pellet market in Europe is expected to level off, Asia will be an additional drive engine in the biomass pellet sector.



Japan

Stimulate plans

Japan has actually created a collection of promote steps to promote renewable energy production and also biomass power generation, such as the Basic Legislation of promoting biomass energy application in 2009 and also state planning to advertise biomass energy application.



One of the most significant plan is Fixed-price Support for Renewable Resource (FIT) executed considering that July 2012. According to this policy, Electric power companies are required to have certain section of biomass energy power generation, like solar photovoltaics and also biomass energy at set price as well as duration. Ever since, the wood pellets intake grows up swiftly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio come to be much more varied. Japan ministry of economic climate, profession and also market (METI) re-exam the purchase price of FIT each year, so the renewable resource cost is unpredictable for power generation business.



Production, usage and also cost

According to the information of FAOSTAT in 2016, the domestic wood pellets production is 90,000 loads in the past 5 years. Yet Japan require to import more wood pellets because of the big consumption. In 2015, it import 230,000 loads from Canada, China and also Vietnam. Offered the domestic production and also import volume, Japan's wood pellets intake is 320,000 heaps in 2015.



Japan usually import premium wood pellets and export low-grade pellets. The import rate is 178 Euro/ton, while the export price is 129 Euro/ton.



The planned biomass power plants

Because the apply of FIT in 2011, there have actually been more than 100 biomass power plant construction jobs, and also 84 of them have actually been authorized.



The federal government aims to increase the proportion of renewable energy by 2030, with solar energy taking up 15%, and also biomass and also hydropower 10%. Besides, the federal government strategy to construct a biomass power area to establish a thorough biomass power use system.



Oji Environment-friendly Resources and also Mitsubishi Paper Mills additionally developed a joint endeavor enterprise to construct a 75MW biomass power plant in Aomori. It is expected to begin manufacturing in 2019.



Future biomass pellets need

FIP policy will continue to advertise the biomass power application in Japan. According to the prediction of Strauss, Japan will certainly need 15 million lots of biomass pellets in the mid-2020s.



Korean

Renewable resource plan

Renewable Portfolio Criterion (RPS) plays an essential duty is Korean's wood pellet market considering that 2012. It requires the power generation firm to raise the percentage of renewable energy from 2% to 10%.



Biomass energy is anticipate to take up 50% -60% of eco-friendly power, among wind, solar, as well as water powers. With the execute of RPS, the demand and also import of wood pellets in Oriental increase quickly.



RPS can minimize the power generation cost by affordable innovation seepage and also raise renewable energy supply. Yet the nuclear power plant proprietors have to boost their management price.



Production as well as demand

According to the information of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not meet residential demand As reported by Bloomberg New Energy Money, Korean's wood pellet demand is 2.2 million heaps in 2014, around 40% of England's. The wood pellet import in Korean has boost from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them comes from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, and also Australia.




Future need.

As reported by Power Information Administration (EIA), Korean's need for wood pellets keep boosting, driven by the RPS policy. Korean government has actually established a goal to import 5 million lots of wood pellets by 2020 to meet 75% of residential need. They will be mostly imported from Canada, Southeast Asia and also America.



China

Renewable energy plan


China's renewable energy market matures quickly in recent times. In 2013, China's National Power administration released a guideline on building a renewable energy profile requirement. chicken feed making machine calls for renewable energy ought to use up 15% of overall power intake by 2020, as well as 20% in 2030. According to this policy, the power generation firm should use certain section of renewable energy. But the supervision as well as charge system is not full.



Manufacturing, export as well as consumption

China has plentiful source of biomass, including crop waste, branch, animal waste, organic waste water, urban trash. According to the data of National Power Administration, the forestry waste is 900 million lots each year, with 1/3 of them can be used as gas.



In the past few years, China's wood pellet production increase swiftly. It exported 287,000 lots of wood pellets to Korean in 2014. Yet in mini pellet machine , the export declines swiftly in the face of Vietnam's low-price competition, however the growing Japan market creates brand-new opportunities.



Owing to the short of wood product supply and the enhancing production expense, China's wood pellet rate raises to 105 Euro/ton. So it is not as affordable as previously.



China's wood pellet consumption is mainly in the eastern and also Guangdong province, where coal central heating boilers are outlawed and the wood pellet price is reduced.



Vietnam

Vietnam has numerous massive furniture makers. So there are bountiful wood wastes to make wood pellets, and also the expense is the most affordable in Asia. As well as the huge wood pellet plant in Asia can promote the economic situation of scale.



Vietnam is a major wood pellet exporter in Asia. It uses up 70% of Korean wood pellet market, as well as provides competitive cost as low as 90 Euro/ton to Korean and Japan market. Besides, the transport cost from Vietnam to Korean is fairly low.



However, Oriental is most likely to increase the wood pellet import requirement, or announce the prospective buyers beforehand. These plans will certainly hinder Vietnam's trade with Oriental. Meanwhile, Japan will certainly formulate comparable policies to hinder Vietnam suppliers from getting involved in Japan market.



Malaysia, Indonesia and Thailand

Compared with Vietnam, Malaysia, Indonesia and also Thailand are all small wood pellets producers and merchants. In 2015, Indonesia as well as Malaysia respectively exported 150,000 loads and also 60,000 tons of wood pellets to Oriental. They also export small amount of Palm bit shells (PKS) to Japan. Under the influence of supplement, top quality as well as quantity, the buying cost is high.


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