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 mostly 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 market.



Japan

Stimulate plans

Japan has actually prepared a collection of boost measures to advertise renewable resource manufacturing and also biomass power generation, such as the Basic Legislation of promoting biomass power application in 2009 and also state preparation to promote biomass power application.



One of the most influential plan is Fixed-price Support for Renewable Resource (FIT) carried out since July 2012. According to this plan, Electric power companies are obliged to have particular part of biomass energy power generation, like solar photovoltaics and also biomass energy at set price as well as period. Ever since, the wood pellets intake grows up quickly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile become more varied. Japan ministry of economic situation, trade and also industry (METI) re-exam the acquisition price of FIT annually, so the renewable resource expense is unpredictable for power generation firms.



Manufacturing, intake and also price

According to the data of FAOSTAT in 2016, the domestic wood pellets manufacturing is 90,000 bunches in the past 5 years. Yet Japan require to import even more wood pellets because of the large usage. In 2015, it import 230,000 heaps from Canada, China as well as Vietnam. Provided the residential production and import quantity, Japan's wood pellets consumption is 320,000 lots in 2015.



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



The intended biomass power plants

Considering that the implement of FIT in 2011, there have been more than 100 biomass nuclear power plant building and construction projects, as well as 84 of them have actually been approved.



The federal government intends to raise the percentage of renewable energy by 2030, with solar energy using up 15%, and biomass as well as hydropower 10%. Besides, the government plan to build a biomass energy zone to establish an extensive biomass energy application system.



Oji Green Resources and also Mitsubishi Paper Mills also constructed a joint venture enterprise to construct a 75MW biomass nuclear power plant in Aomori. It is expected to begin production in 2019.




Future biomass pellets need

FIP plan will remain to advertise the biomass energy application in Japan. According to the prediction of Strauss, Japan will certainly need 15 million lots of biomass pellets in the mid-2020s.



Oriental

Renewable resource plan

Renewable Profile Criterion (RPS) plays an essential duty is Korean's wood pellet market considering that 2012. It calls for the power generation firm to increase the proportion of renewable energy from 2% to 10%.



Biomass energy is expect to take up 50% -60% of eco-friendly power, amongst wind, solar, and also water powers. With the execute of RPS, the need and import of wood pellets in Oriental boost swiftly.



RPS can lower the power generation price by affordable innovation seepage as well as raise renewable energy supply. Yet the power plant proprietors have to enhance their management cost.



Manufacturing as well as need

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



Future need.

As reported by Energy Information Administration (EIA), Korean's demand for wood pellets keep raising, driven by the RPS plan. Korean government has set a goal to import 5 million lots of wood pellets by 2020 to meet 75% of residential need. small wood pellet machine will certainly be mostly imported from Canada, Southeast Asia and America.



China

Renewable resource policy

China's renewable resource sector grows up quickly in the last few years. In 2013, China's National Energy management released a direction on constructing a renewable resource profile standard. It needs renewable energy must use up 15% of total energy intake by 2020, and also 20% in 2030. According to this policy, the power generation company must utilize certain portion of renewable energy. However the guidance and also penalty system is not total.



Production, export as well as intake


China has bountiful source of biomass, including plant waste, branch, pet waste, natural waste water, city rubbish. According to the data of National Energy Administration, the forestry waste is 900 million loads annually, with 1/3 of them can be made use of as gas.



In the past couple of years, China's wood pellet production rise swiftly. It exported 287,000 tons of wood pellets to Korean in 2014. However in 2015, the export declines swiftly despite Vietnam's low-price competitors, but the growing Japan market develops brand-new chances.



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



China's wood pellet intake is primarily in the eastern as well as Guangdong province, where coal central heating boilers are prohibited and also the wood pellet expense is lower.



Vietnam

Vietnam has numerous large furniture makers. So there are abundant wood wastes to make wood pellets, and also the cost is the lowest in Asia. And also 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 Korean wood pellet market, and also supplies competitive rate as reduced as 90 Euro/ton to Korean as well as Japan market. Besides, the transportation price from Vietnam to Korean is rather low.



Nonetheless, Oriental is likely to increase the wood pellet import criterion, or announce the bidders in advance. These plans will certainly impede Vietnam's trade with Korean. At hemp pellet machine , Japan will prepare comparable policies to prevent Vietnam suppliers from entering into Japan market.



Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia as well as Thailand are all small wood pellets producers and also exporters. In 2015, Indonesia and also Malaysia specifically exported 150,000 heaps and also 60,000 tons of wood pellets to Korean. They also export percentage of Palm bit coverings (PKS) to Japan. Intoxicated of supplement, top quality and amount, the purchasing price is high.


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