Notes

Asia wood pellet market analysis as well as prediction<br>
In Asia, Japan and also Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia and Malaysia are generally wood pellets exporters. As the wood pellet market in Europe is expected to level off, Asia will be another drive engine in the biomass pellet industry.



Japan

Promote plans

Japan has actually created a collection of stimulate procedures to advertise renewable resource manufacturing and also biomass power generation, such as the Basic Law of promoting biomass energy application in 2009 as well as state preparation to promote biomass power application.



One of the most prominent policy is Fixed-price Assistance for Renewable Resource (FIT) carried out given 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 usage grows up rapidly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile end up being much more diversified. Japan ministry of economic situation, profession and also industry (METI) re-exam the purchase rate of FIT annually, so the renewable energy expense is unpredictable for power generation companies.



Production, consumption and cost

According to the information of FAOSTAT in 2016, the domestic wood pellets manufacturing is 90,000 lots in the past 5 years. However Japan need to import even more wood pellets due to the big intake. In 2015, it import 230,000 heaps from Canada, China and also Vietnam. Provided the residential manufacturing as well as import quantity, Japan's wood pellets consumption is 320,000 loads in 2015.



Japan usually import premium wood pellets as well as export low-quality pellets. The import price is 178 Euro/ton, while the export cost is 129 Euro/ton.



The intended biomass nuclear power plant

Since the apply of suit 2011, there have been more than 100 biomass power plant building jobs, and 84 of them have been approved.



The government intends to boost the percentage of renewable resource by 2030, with solar energy taking up 15%, and biomass as well as hydropower 10%. Besides, pelletizer die to build a biomass power zone to establish an extensive biomass power usage system.



Oji Environment-friendly Resources and Mitsubishi Paper Mills likewise developed a joint endeavor business to construct a 75MW biomass nuclear power plant in Aomori. It is anticipated to begin production in 2019.



Future biomass pellets need

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



Oriental

Renewable resource plan

Renewable Profile Requirement (RPS) plays a crucial duty is Korean's wood pellet market since 2012. It requires the power generation business to raise the percentage of renewable resource from 2% to 10%.



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



RPS can minimize the power generation cost by affordable modern technology infiltration and increase renewable energy supply. Yet the nuclear power plant owners need to enhance their administration cost.




Production and also need

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



Future demand.

As reported by Power Info Management (EIA), Korean's need for wood pellets maintain enhancing, driven by the RPS policy. Oriental government has actually established a goal to import 5 million tons of wood pellets by 2020 to meet 75% of domestic need. They will be mostly imported from Canada, Southeast Asia and America.



China

Renewable resource policy

China's renewable energy industry matures quickly over the last few years. In 2013, China's National Energy management released a direction on developing a renewable resource profile standard. It calls for renewable resource must take up 15% of complete power intake by 2020, and 20% in 2030. According to this regulation, the power generation company should use particular portion of renewable energy. However Learn More Here as well as penalty system is not complete.



Production, export as well as usage

China has abundant resource of biomass, consisting of crop waste, branch, animal waste, organic drainage, urban rubbish. According to the data of National Power Management, the forestry waste is 900 million loads each year, with 1/3 of them can be utilized as gas.



In the past few years, China's wood pellet production increase quickly. It exported 287,000 tons of wood pellets to Oriental in 2014. Yet in 2015, the export declines quickly in the face of Vietnam's low-price competitors, yet the growing Japan market produces brand-new possibilities.



Owing to the short of wood product supply and also the increasing production cost, China's wood pellet price raises to 105 Euro/ton. So it is not as affordable as before.




China's wood pellet intake is generally in the east and Guangdong province, where coal central heating boilers are outlawed and also the wood pellet price is reduced.



Vietnam

Vietnam has many large-scale furnishings makers. So there are plentiful wood wastes to make wood pellets, and the expense is the lowest in Asia. And also the big wood pellet plant in Asia can promote the economy of range.



Vietnam is a significant wood pellet exporter in Asia. It takes up 70% of Oriental wood pellet market, and also supplies affordable price as low as 90 Euro/ton to Korean as well as Japan market. Besides, the transport price from Vietnam to Korean is quite reduced.



Nevertheless, Korean is most likely to raise the wood pellet import requirement, or announce the bidders in advance. These policies will impede Vietnam's trade with Oriental. At the same time, Japan will certainly create comparable policies to prevent Vietnam suppliers from entering into Japan market.



Malaysia, Indonesia and also Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all small wood pellets manufacturers and merchants. In 2015, Indonesia and Malaysia respectively exported 150,000 bunches as well as 60,000 tons of wood pellets to Oriental. They also export small amount of Hand kernel shells (PKS) to Japan. Drunk of supplement, quality and quantity, the getting rate is high.


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