Notes

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



Japan

Boost policies

Japan has actually created a series of stimulate measures to promote renewable resource manufacturing 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 power application.



The most influential plan is Fixed-price Assistance for Renewable Energy (FIT) accomplished considering that July 2012. According to this policy, Electric power firms are required to have certain portion of biomass energy power generation, like solar photovoltaics and also biomass power at fixed price and also period. Ever since, the wood pellets intake matures rapidly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio end up being extra diversified. Japan ministry of economy, trade and also market (METI) re-exam the purchase cost of FIT yearly, so the renewable energy expense is unpredictable for power generation companies.



Manufacturing, usage and cost

According to the information of FAOSTAT in 2016, the residential wood pellets production is 90,000 bunches in the past 5 years. However Japan need to import more wood pellets as a result of the big usage. In 2015, it import 230,000 bunches from Canada, China and Vietnam. Offered the residential manufacturing as well as import volume, Japan's wood pellets consumption is 320,000 heaps in 2015.



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



The intended biomass nuclear power plant

Because the carry out of suit 2011, there have been more than 100 biomass power plant construction projects, as well as 84 of them have been authorized.




The federal government intends to increase the proportion of renewable energy by 2030, with solar power taking up 15%, and also biomass and hydropower 10%. Besides, the government strategy to build a biomass power zone to develop a detailed biomass energy application system.



Oji Green Resources as well as Mitsubishi Paper Mills additionally built a joint endeavor business to build a 75MW biomass power plant in Aomori. It is anticipated to begin production in 2019.



Future biomass pellets demand

FIP plan will 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.



Korean

Renewable resource plan

Renewable Portfolio Requirement (RPS) plays an essential function is Korean's wood pellet market because 2012. It calls for the power generation company to elevate the percentage of renewable resource from 2% to 10%.



Biomass energy is expect to occupy 50% -60% of eco-friendly power, amongst wind, solar, and also water powers. With the implement of RPS, the need and also import of wood pellets in Korean rise swiftly.



RPS can decrease the power generation price by competitive technology infiltration as well as elevate renewable resource supply. Yet the nuclear power plant proprietors have to raise their monitoring expense.



Production and also demand

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




Future need.

As reported by Power Details Management (EIA), Korean's demand for wood pellets maintain increasing, driven by the RPS policy. Korean federal government has actually established a goal to import 5 million lots of wood pellets by 2020 to satisfy 75% of residential need. They will be primarily imported from Canada, Southeast Asia as well as America.



China

Renewable energy plan

China's renewable energy industry matures rapidly in recent times. In richi machinery , China's National Power administration released a guideline on constructing a renewable energy profile requirement. It calls for renewable resource must use up 15% of overall energy usage by 2020, and also 20% in 2030. According to this law, the power generation business should make use of specific section of renewable resource. But the supervision as well as penalty system is not full.



Production, export as well as intake

China has abundant source of biomass, consisting of plant waste, branch, pet waste, organic waste water, city rubbish. According to the data of National Power Administration, the forestry waste is 900 million loads every year, with 1/3 of them can be utilized as fuel.



In the past few years, China's wood pellet manufacturing increase swiftly. It exported 287,000 lots of wood pellets to Oriental in 2014. But in 2015, the export declines quickly when faced with Vietnam's low-price competition, yet the expanding Japan market creates new possibilities.



Owing to the except wood material supply and also the boosting production expense, China's wood pellet cost enhances to 105 Euro/ton. So it is not as competitive as previously.



China's wood pellet intake is generally in the eastern as well as Guangdong district, where coal boilers are banned as well as the wood pellet price is lower.



Vietnam

Vietnam has many massive furniture suppliers. So there are abundant wood wastes to make wood pellets, and the expense is the most affordable in Asia. And the big wood pellet plant in Asia can advertise the economic situation of scale.



Vietnam is a significant wood pellet merchant in Asia. It occupies 70% of Korean wood pellet market, and also provides competitive price as low as 90 Euro/ton to Korean and also Japan market. Besides, the transport price from Vietnam to Korean is quite reduced.



Nevertheless, Oriental is most likely to elevate the wood pellet import standard, or reveal the bidders beforehand. These plans will prevent Vietnam's trade with Oriental. Meanwhile, Japan will formulate comparable policies to impede Vietnam dealerships from getting involved in Japan market.



Malaysia, Indonesia as well as Thailand

Compared with Vietnam, Malaysia, Indonesia as well as Thailand are all little wood pellets producers and exporters. In 2015, Indonesia as well as Malaysia respectively exported 150,000 heaps as well as 60,000 tons of wood pellets to Oriental. They additionally export percentage of Hand bit shells (PKS) to Japan. Drunk of supplement, quality as well as quantity, the purchasing rate is high.


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