Notes

Asia wood pellet market evaluation and also prediction<br>
In Asia, Japan and Korean are major 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 another drive engine in the biomass pellet market.



Japan

Boost plans

Japan has actually drawn up a collection of stimulate steps to promote renewable energy manufacturing and biomass power generation, such as the Basic Regulation of advertising biomass power application in 2009 and state planning to promote biomass power application.



One of the most influential policy is Fixed-price Support for Renewable Resource (FIT) executed since July 2012. According to this plan, Electric power firms are obliged to have specific portion of biomass energy power generation, like solar photovoltaics and also biomass power at fixed price and period. Ever since, the wood pellets consumption grows up quickly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile come to be much more diversified. Japan ministry of economy, profession as well as market (METI) re-exam the purchase rate of FIT every year, so the renewable resource price is unstable for power generation business.



Manufacturing, usage and price

According to the information of FAOSTAT in 2016, the residential wood pellets manufacturing is 90,000 loads in the past 5 years. Yet Japan require to import even more wood pellets as a result of the huge usage. In 2015, it import 230,000 bunches from Canada, China and also Vietnam. Offered the residential manufacturing as well as import quantity, Japan's wood pellets intake is 320,000 loads in 2015.



Japan usually import top notch wood pellets and also export low-quality pellets. The import rate is 178 Euro/ton, while the export price is 129 Euro/ton.



The prepared biomass nuclear power plant

Because the implement of FIT in 2011, there have actually been more than 100 biomass power plant construction projects, as well as 84 of them have been accepted.



The government aims to raise the percentage of renewable energy by 2030, with solar power occupying 15%, and biomass and also hydropower 10%. Besides, the government strategy to construct a biomass power zone to develop a comprehensive biomass energy utilization system.



Oji Environment-friendly Resources and Mitsubishi Paper Mills likewise built a joint venture business to build a 75MW biomass nuclear power plant in Aomori. It is expected to start production in 2019.



Future biomass pellets need

FIP policy will continue to promote the biomass energy 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 energy plan

Renewable Portfolio Standard (RPS) plays a crucial function is Korean's wood pellet market considering that 2012. It calls for the power generation business to elevate the percentage of renewable energy from 2% to 10%.



Biomass energy is expect to use up 50% -60% of eco-friendly power, among wind, solar, and water powers. With the execute of RPS, the demand and also import of wood pellets in Korean rise rapidly.



RPS can lower the power generation expense by competitive modern technology infiltration and increase renewable resource supply. Yet the nuclear power plant owners need to raise their management cost.



Production and demand

According to the information of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not satisfy residential demand As reported by Bloomberg New Power Financing, 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 originates from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future need.

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



China

Renewable resource plan

China's renewable resource sector matures quickly in recent times. In 2013, China's National Energy management published a direction on developing a renewable energy profile criterion. It calls for renewable energy must take up 15% of complete power usage by 2020, as well as 20% in 2030. According to this guideline, the power generation business need to use particular part of renewable energy. Yet small wood pellet machine as well as charge system is not full.



Production, export as well as usage

China has plentiful source of biomass, consisting of plant waste, branch, animal waste, natural drainage, city garbage. According to the information of National Power Management, the forestry waste is 900 million lots every year, with 1/3 of them can be used as gas.




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. But in 2015, the export declines quickly despite Vietnam's low-price competition, yet the expanding Japan market creates brand-new chances.



Owing to the except wood product supply and the increasing production cost, China's wood pellet cost boosts to 105 Euro/ton. So it is not as affordable as previously.




China's wood pellet intake is mostly in the east and also Guangdong province, where coal boilers are prohibited and also the wood pellet cost is reduced.



Vietnam

Vietnam has numerous massive furniture makers. So there are abundant wood wastes to make wood pellets, and the cost is the most affordable in Asia. And the large wood pellet plant in Asia can promote the economic situation of scale.



Vietnam is a significant wood pellet merchant in Asia. It occupies 70% of Oriental wood pellet market, and uses competitive rate as low as 90 Euro/ton to Oriental and Japan market. Besides, the transportation expense from Vietnam to Korean is rather reduced.



However, Korean is most likely to elevate the wood pellet import requirement, or announce the bidders ahead of time. These policies will certainly hinder Vietnam's trade with Oriental. At the same time, Japan will formulate similar policies to prevent Vietnam suppliers from getting into Japan market.



Malaysia, Indonesia as well as Thailand

Compared to Vietnam, Malaysia, Indonesia and also Thailand are all tiny wood pellets manufacturers as well as merchants. In richi pellet mill , Indonesia and Malaysia respectively exported 150,000 heaps and also 60,000 tons of wood pellets to Korean. They additionally export small amount of Hand bit coverings (PKS) to Japan. Under the influence of supplement, quality as well as quantity, the getting rate is high.


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