Notes

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



Japan

Boost policies

Japan has formulated a collection of boost steps to advertise renewable resource production and biomass power generation, such as the Basic Law of promoting biomass power application in 2009 and state planning to promote biomass power application.



The most influential plan is Fixed-price Support for Renewable Energy (FIT) carried out considering that July 2012. According to chicken feed making machine , Electric power companies are obliged to have particular portion of biomass energy power generation, like solar photovoltaics and also biomass energy at fixed price and also duration. Ever since, the wood pellets intake matures swiftly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile come to be much more diversified. Japan ministry of economic situation, profession and market (METI) re-exam the purchase rate of FIT every year, so the renewable energy price is unstable for power generation companies.



Manufacturing, consumption and rate

According to the data of FAOSTAT in 2016, the domestic wood pellets manufacturing is 90,000 lots in the past 5 years. But Japan require to import more wood pellets because of the huge consumption. In 2015, it import 230,000 tons from Canada, China as well as Vietnam. Provided the residential production and also import volume, Japan's wood pellets intake is 320,000 bunches in 2015.



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



The prepared biomass power plants

Given that the implement of suit 2011, there have actually been more than 100 biomass nuclear power plant building tasks, as well as 84 of them have actually been authorized.



The government intends to increase the percentage of renewable energy by 2030, with solar power occupying 15%, and also biomass as well as hydropower 10%. Besides, the federal government plan to develop a biomass power area to establish an extensive biomass power utilization system.



Oji Eco-friendly Resources and Mitsubishi Paper Mills additionally developed a joint venture enterprise to build 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 promote the biomass power application in Japan. According to the prediction of Strauss, Japan will certainly require 15 million tons of biomass pellets in the mid-2020s.



Oriental

Renewable resource policy

Renewable Profile Standard (RPS) plays a vital role is Korean's wood pellet market given that 2012. It requires the power generation business to elevate the percentage of renewable resource from 2% to 10%.



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



RPS can reduce the power generation cost by affordable technology seepage as well as raise renewable resource supply. However the power plant owners need to raise their administration expense.



Manufacturing as well as demand

According to the information of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not fulfill residential need As reported by Bloomberg New Energy Finance, Korean's wood pellet demand is 2.2 million lots 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 also others from Malaysia, Canada, America, Russia, Indonesia, as well as Australia.



Future need.

As reported by Energy Information Administration (EIA), Korean's demand for wood pellets maintain increasing, driven by the RPS policy. richi pellet machine has set an objective to import 5 million tons of wood pellets by 2020 to fulfill 75% of residential need. They will certainly be mostly imported from Canada, Southeast Asia as well as America.




China

Renewable resource policy

China's renewable resource market grows up quickly recently. In 2013, China's National Energy management released an instruction on constructing a renewable resource profile standard. It needs renewable energy should use up 15% of overall energy intake by 2020, and 20% in 2030. According to this guideline, the power generation business need to utilize certain part of renewable energy. But the supervision and also penalty system is not total.



Manufacturing, export and also consumption

China has plentiful source of biomass, consisting of crop waste, branch, animal waste, natural waste water, city rubbish. According to the information of National Energy Administration, the forestry waste is 900 million loads annually, with 1/3 of them can be used as fuel.



In the past couple of years, China's wood pellet production increase swiftly. It exported 287,000 lots of wood pellets to Oriental in 2014. However in 2015, the export declines quickly in the face of Vietnam's low-price competition, but the growing Japan market produces new possibilities.



Owing to the short of wood material supply and the boosting production cost, China's wood pellet price increases to 105 Euro/ton. So it is not as affordable as previously.



China's wood pellet intake is mostly in the eastern as well as Guangdong district, where coal central heating boilers are banned and also the wood pellet price is reduced.



Vietnam

Vietnam has numerous massive furnishings producers. So there are abundant wood wastes to make wood pellets, as well as the cost is the lowest in Asia. As well as the huge wood pellet plant in Asia can advertise the economy of scale.



Vietnam is a significant wood pellet exporter in Asia. It uses up 70% of Oriental wood pellet market, and also provides affordable price as reduced as 90 Euro/ton to Korean and also Japan market. Besides, the transportation price from Vietnam to Korean is fairly low.



Nonetheless, Oriental is likely to raise the wood pellet import criterion, or reveal the bidders ahead of time. These policies will certainly prevent Vietnam's trade with Korean. Meanwhile, Japan will formulate comparable policies to impede Vietnam dealerships from getting involved in Japan market.



Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia as well as Thailand are all small wood pellets producers and merchants. In 2015, Indonesia as well as Malaysia respectively exported 150,000 heaps and also 60,000 lots of wood pellets to Korean. They additionally export percentage of Palm kernel coverings (PKS) to Japan. Drunk of supplement, quality and amount, the acquiring price is high.


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