Notes

Asia wood pellet market analysis as well as prediction<br>
In manual animal feed pellet machine , Japan and Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia and also Malaysia are generally wood pellets exporters. As the wood pellet market in Europe is anticipated to level off, Asia will be an additional drive engine in the biomass pellet industry.



Japan

Stimulate policies

Japan has actually drawn up a series of stimulate procedures to advertise renewable resource production as well as biomass power generation, such as the Basic Law of promoting biomass power application in 2009 and state preparation to advertise biomass power application.



One of the most prominent plan is Fixed-price Support for Renewable Resource (FIT) performed considering that July 2012. According to this policy, Electric power companies are required to have specific part of biomass energy power generation, like solar photovoltaics and biomass power at set price and also duration. Ever since, the wood pellets consumption matures quickly in Japan.




After the Fukushima nuclear accident in 2010, the power generation portfolio end up being extra diversified. Japan ministry of economic climate, profession as well as market (METI) re-exam the acquisition rate of FIT yearly, so the renewable resource expense is unpredictable for power generation business.



Production, intake and rate

According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 bunches in the past 5 years. But pellet cooling machine to import more wood pellets because of the large usage. In 2015, it import 230,000 loads from Canada, China and Vietnam. Given the domestic production as well as import quantity, Japan's wood pellets consumption is 320,000 heaps in 2015.



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



The planned biomass nuclear power plant

Since the implement of suit 2011, there have been more than 100 biomass nuclear power plant building projects, as well as 84 of them have been accepted.



The government intends to boost the percentage of renewable energy by 2030, with solar power using up 15%, and biomass and also hydropower 10%. Besides, the government strategy to construct a biomass power area to develop a thorough biomass energy application system.



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



Future biomass pellets need

FIP plan will certainly remain to promote the biomass power application in Japan. According to the prediction of Strauss, Japan will require 15 million tons of biomass pellets in the mid-2020s.



Oriental

Renewable resource policy

Renewable Profile Requirement (RPS) plays an important role is Korean's wood pellet market given that 2012. It calls for the power generation firm to increase the percentage of renewable resource from 2% to 10%.



Biomass energy is expect to occupy 50% -60% of eco-friendly power, among wind, solar, and water powers. With the carry out of RPS, the need and also import of wood pellets in Oriental rise quickly.



RPS can lower the power generation expense by competitive modern technology infiltration as well as elevate renewable resource supply. But the nuclear power plant owners have to increase their monitoring expense.



Production and demand

According to the data of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not meet residential need As reported by Bloomberg New Power Financing, Korean's wood pellet demand is 2.2 million heaps 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 demand.

As reported by Energy Information Management (EIA), Korean's demand for wood pellets maintain increasing, driven by the RPS plan. Oriental government has established an objective to import 5 million tons of wood pellets by 2020 to satisfy 75% of domestic demand. They will be generally imported from Canada, Southeast Asia as well as America.



China

Renewable resource plan

China's renewable resource market matures quickly in the last few years. In 2013, China's National Energy administration published a direction on constructing a renewable resource profile requirement. It requires renewable energy ought to take up 15% of total energy consumption by 2020, as well as 20% in 2030. According to this regulation, the power generation business must use certain section of renewable resource. Yet the guidance and also penalty system is not full.




Production, export as well as consumption

China has bountiful source of biomass, including crop waste, branch, pet waste, organic drainage, city waste. According to the information of National Power Administration, the forestry waste is 900 million heaps yearly, with 1/3 of them can be utilized as fuel.



In the past few years, China's wood pellet manufacturing increase rapidly. It exported 287,000 lots of wood pellets to Korean in 2014. But in 2015, the export declines rapidly in the face of Vietnam's low-price competition, however the expanding Japan market develops brand-new chances.



Owing to the except wood material supply as well as the raising manufacturing expense, China's wood pellet price enhances to 105 Euro/ton. So it is not as competitive as previously.



China's wood pellet consumption is primarily in the eastern and Guangdong district, where coal central heating boilers are outlawed as well as the wood pellet price is reduced.



Vietnam

Vietnam has many massive furniture makers. So there are abundant wood wastes to make wood pellets, and the cost is the most affordable in Asia. And also the huge wood pellet plant in Asia can promote the economy of scale.



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



Nevertheless, Korean is likely to raise the wood pellet import criterion, or reveal the bidders beforehand. These plans will prevent Vietnam's trade with Korean. On the other hand, Japan will draw up comparable policies to hinder Vietnam dealers from getting involved in Japan market.



Malaysia, Indonesia as well as Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all small wood pellets manufacturers as well as exporters. In 2015, Indonesia and also Malaysia respectively exported 150,000 bunches and also 60,000 lots of wood pellets to Oriental. They additionally export percentage of Hand bit shells (PKS) to Japan. Intoxicated of supplement, quality as well as amount, the purchasing cost is high.


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