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 and Malaysia are mostly wood pellets merchants. As the wood pellet market in Europe is expected to level off, Asia will certainly be another drive engine in the biomass pellet market.



Japan

Promote policies

Japan has actually prepared a series of promote actions to promote renewable resource manufacturing and also biomass power generation, such as the Basic Legislation of promoting biomass energy application in 2009 and state planning to promote biomass power application.



One of the most prominent policy is Fixed-price Support for Renewable Energy (FIT) accomplished given that July 2012. According to this policy, Electric power business are obliged to have particular portion of biomass energy power generation, like solar photovoltaics and biomass energy at set price and duration. Ever since, the wood pellets usage matures rapidly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile come to be more diversified. Japan ministry of economic situation, profession and market (METI) re-exam the acquisition price of FIT each year, so the renewable resource price is unstable for power generation business.



Production, consumption and also rate

According to the information of FAOSTAT in 2016, the residential wood pellets manufacturing is 90,000 loads in the past 5 years. But Japan require to import even more wood pellets as a result of the large intake. In 2015, it import 230,000 loads from Canada, China as well as Vietnam. Given the domestic production as well as import volume, Japan's wood pellets usage is 320,000 loads in 2015.



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



The prepared biomass power plants

Given that the apply of FIT in 2011, there have actually been greater than 100 biomass power plant building and construction jobs, and also 84 of them have been authorized.



The federal government intends to boost the proportion of renewable resource by 2030, with solar energy occupying 15%, and also biomass and also hydropower 10%. Besides, the federal government plan to develop a biomass power area to establish a thorough biomass energy use system.



Oji Green Resources and also Mitsubishi Paper Mills additionally built a joint venture enterprise to build a 75MW biomass nuclear power plant in Aomori. It is anticipated to start manufacturing in 2019.



Future biomass pellets demand

FIP policy will certainly continue 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 energy plan


Renewable Portfolio Requirement (RPS) plays an important duty 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 power is expect to use up 50% -60% of sustainable power, among wind, solar, and water powers. With the apply of RPS, the need and also import of wood pellets in Korean boost quickly.



RPS can decrease the power generation cost by competitive technology infiltration as well as increase renewable resource supply. But the nuclear power plant proprietors have to boost their administration cost.



Production and also demand

According to the data of FAOSTAT, The wood pellet manufacturing in Korean is 15,000 t, which can not meet residential demand As reported by Bloomberg New Power Finance, Korean's wood pellet need is 2.2 million lots in 2014, around 40% of England's. The wood pellet import in Korean has rise 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, and Australia.



Future demand.

As reported by Power Info Management (EIA), Korean's need for wood pellets maintain raising, driven by the RPS policy. Oriental federal government has actually established an objective to import 5 million lots of wood pellets by 2020 to meet 75% of domestic need. They will certainly be mainly imported from Canada, Southeast Asia and also America.



China

Renewable resource plan

China's renewable energy industry grows up swiftly recently. In 2013, China's National Energy management released an instruction on building a renewable energy profile criterion. It calls for renewable resource must take up 15% of complete energy consumption by 2020, as well as 20% in 2030. According to this guideline, the power generation firm should use specific portion of renewable energy. However the supervision as well as penalty system is not complete.



Manufacturing, export as well as usage

China has plentiful source of biomass, including crop waste, branch, animal waste, organic drainage, city waste. According to the data of National Power Management, the forestry waste is 900 million bunches each year, with 1/3 of them can be used as fuel.



In the past couple of years, China's wood pellet manufacturing boost rapidly. It exported 287,000 lots of wood pellets to Korean in 2014. However in 2015, the export decreases quickly despite Vietnam's low-price competitors, but the expanding Japan market produces brand-new possibilities.



Owing to the except wood product supply as well as the boosting manufacturing cost, China's wood pellet price raises to 105 Euro/ton. So it is not as competitive as previously.



China's wood pellet usage is mostly in the east and also Guangdong district, where coal boilers are banned and the wood pellet expense is reduced.



Vietnam

Vietnam has many massive furnishings suppliers. So there are abundant wood wastes to make wood pellets, and also the price is the lowest in Asia. And also mini fish feed making machine in Asia can advertise the economic situation of scale.



Vietnam is a major wood pellet exporter in Asia. It takes up 70% of Korean wood pellet market, as well as supplies affordable rate as reduced as 90 Euro/ton to Korean and also Japan market. Besides, the transportation expense from Vietnam to Korean is fairly reduced.




However, Oriental is most likely to increase the wood pellet import requirement, or introduce the prospective buyers in advance. sheep feed pellet machine will certainly impede Vietnam's trade with Oriental. On the other hand, Japan will draw up comparable policies to prevent Vietnam dealers from getting involved in 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 exporters. In 2015, Indonesia and Malaysia respectively exported 150,000 lots as well as 60,000 lots of wood pellets to Oriental. They likewise export small amount of Palm bit shells (PKS) to Japan. Drunk of supplement, top quality as well as quantity, the purchasing cost is high.


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