Notes

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



Japan

Boost plans

Japan has prepared a series of boost measures to promote renewable resource production as well as biomass power generation, such as the Basic Law of advertising biomass power application in 2009 and also state preparation to advertise biomass energy application.



One of the most influential plan is Fixed-price Support for Renewable Energy (FIT) accomplished because July 2012. According to this policy, Electric power companies are obliged to have specific part of biomass energy power generation, like solar photovoltaics and also biomass energy at set price and also period. Ever since, the wood pellets usage matures swiftly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile come to be much more varied. Japan ministry of economy, trade as well as sector (METI) re-exam the purchase price of FIT every year, so the renewable energy expense is unpredictable for power generation firms.




Manufacturing, intake and rate

According to the information of FAOSTAT in 2016, the domestic wood pellets production is 90,000 tons in the past 5 years. Yet Japan need to import more wood pellets due to the large consumption. In 2015, it import 230,000 lots from Canada, China and Vietnam. Given the residential manufacturing and also import volume, Japan's wood pellets consumption is 320,000 heaps in 2015.



Japan normally import top notch wood pellets as well as export low-grade pellets. The import price is 178 Euro/ton, while the export price is 129 Euro/ton.



The prepared biomass power plants

Since the implement of suit 2011, there have actually been more than 100 biomass power plant construction projects, and 84 of them have been accepted.



The federal government intends to increase the proportion of renewable energy by 2030, with solar power using up 15%, as well as biomass as well as hydropower 10%. Besides, the federal government plan to construct a biomass energy area to develop a detailed biomass power usage system.



Oji Environment-friendly Resources as well as Mitsubishi Paper Mills likewise constructed a joint endeavor enterprise to develop a 75MW biomass nuclear power plant in Aomori. It is anticipated to begin production in 2019.



Future biomass pellets need

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



Oriental

Renewable energy plan

Renewable Profile Criterion (RPS) plays a vital duty is Korean's wood pellet market considering that 2012. It calls for the power generation company to raise the percentage of renewable resource from 2% to 10%.



Biomass energy is anticipate to use up 50% -60% of renewable power, amongst wind, solar, as well as water powers. With the implement of RPS, the need and import of wood pellets in Oriental rise swiftly.



RPS can reduce the power generation cost by competitive technology seepage as well as elevate renewable resource supply. However the power plant owners have to increase their administration expense.



Manufacturing and also demand

According to the information of FAOSTAT, The wood pellet manufacturing in Oriental is 15,000 t, which can not meet domestic demand As reported by Bloomberg New Energy Finance, Korean's wood pellet demand is 2.2 million bunches 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 originates from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future demand.

As reported by Power Details Management (EIA), Korean's need for wood pellets maintain raising, driven by the RPS policy. Oriental government has actually established a goal to import 5 million tons of wood pellets by 2020 to fulfill 75% of residential demand. Richi machine will certainly be mostly imported from Canada, Southeast Asia and also America.



China

Renewable energy policy

China's renewable resource sector matures quickly in recent years. In 2013, China's National Energy management published a direction on constructing a renewable resource profile criterion. It requires renewable resource ought to occupy 15% of overall energy usage by 2020, as well as 20% in 2030. According to this regulation, the power generation company should use certain part of renewable energy. However Recommended Site and fine system is not total.



Production, export as well as usage

China has plentiful source of biomass, including plant waste, branch, pet waste, organic drainage, city trash. According to the data of National Power Administration, the forestry waste is 900 million bunches every year, with 1/3 of them can be made use of as fuel.



In the past couple of years, China's wood pellet production rise swiftly. It exported 287,000 tons of wood pellets to Oriental in 2014. Yet in 2015, the export declines swiftly in the face of Vietnam's low-price competition, however the expanding Japan market produces new opportunities.



Owing to the short of wood material supply and the increasing manufacturing price, China's wood pellet cost raises to 105 Euro/ton. So it is not as competitive as in the past.



China's wood pellet intake is generally in the east and also Guangdong district, where coal boilers are outlawed and also the wood pellet expense is lower.



Vietnam

Vietnam has several large furnishings manufacturers. So there are abundant wood wastes to make wood pellets, and the price is the most affordable in Asia. As well as the big wood pellet plant in Asia can promote the economy of range.



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



However, Oriental is most likely to raise the wood pellet import criterion, or introduce the prospective buyers ahead of time. These policies will prevent Vietnam's trade with Oriental. Meanwhile, Japan will formulate similar policies to hinder Vietnam dealerships from getting involved in Japan market.




Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia and Thailand are all tiny wood pellets manufacturers and also exporters. In 2015, Indonesia and Malaysia respectively exported 150,000 bunches and 60,000 lots of wood pellets to Korean. They additionally export percentage of Palm kernel coverings (PKS) to Japan. Intoxicated of supplement, top quality and amount, the getting price is high.


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