Notes

Asia wood pellet market analysis as well as prediction<br>
In Asia, Japan and also Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia and also Malaysia are generally wood pellets merchants. As the wood pellet market in Europe is expected to level off, Asia will be one more drive engine in the biomass pellet sector.



Japan


Stimulate plans

Japan has formulated a collection of promote procedures to promote renewable resource manufacturing and also biomass power generation, such as the Basic Law of advertising biomass power application in 2009 and state preparation to promote biomass power application.




The most significant policy is Fixed-price Support for Renewable Resource (FIT) performed since July 2012. According to this plan, Electric power companies are required to have certain section of biomass energy power generation, like solar photovoltaics and also biomass power at set price as well as period. Since then, the wood pellets consumption grows up rapidly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio come to be much more diversified. Japan ministry of economic situation, profession and sector (METI) re-exam the acquisition price of FIT annually, so the renewable energy expense is unsteady for power generation business.



Manufacturing, consumption and also rate

According to the information of FAOSTAT in 2016, the domestic wood pellets production is 90,000 tons in the past 5 years. But Japan need to import more wood pellets as a result of the huge consumption. In 2015, it import 230,000 loads from Canada, China as well as Vietnam. Provided the residential production and also import volume, Japan's wood pellets consumption is 320,000 lots in 2015.



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



The prepared biomass power plants

Because the execute of suit 2011, there have been more than 100 biomass power plant construction jobs, as well as 84 of them have been approved.



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



Oji Environment-friendly Resources and also Mitsubishi Paper Mills also built a joint endeavor enterprise to construct a 75MW biomass power plant in Aomori. It is anticipated to begin manufacturing 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 Profile Criterion (RPS) plays an essential function is Korean's wood pellet market considering that 2012. It calls for the power generation firm to elevate the proportion of renewable resource from 2% to 10%.



Biomass energy is expect to occupy 50% -60% of eco-friendly power, amongst wind, solar, and water powers. With the carry out of RPS, the demand as well as import of wood pellets in Korean boost rapidly.



RPS can decrease the power generation price by competitive technology seepage and elevate renewable energy supply. Yet the power plant proprietors have to enhance their monitoring price.



Production as well as need

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 Money, Korean's wood pellet demand is 2.2 million bunches in 2014, around 40% of England's. The wood pellet import in Korean has increase 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 demand.

As reported by Power Details Administration (EIA), Korean's demand for wood pellets keep raising, driven by the RPS plan. Oriental government has actually established an objective to import 5 million tons of wood pellets by 2020 to fulfill 75% of residential need. They will certainly be generally imported from Canada, Southeast Asia as well as America.



China

Renewable energy plan

China's renewable energy industry grows up quickly in recent years. In Richi machine , China's National Energy administration published a direction on constructing a renewable resource portfolio standard. poultry feed pellet machine price requires renewable resource must use up 15% of overall energy consumption by 2020, and also 20% in 2030. According to this regulation, the power generation firm must use particular part of renewable energy. Yet the guidance and penalty system is not full.



Production, export and usage

China has abundant source of biomass, including crop waste, branch, pet waste, natural drainage, city waste. According to the information of National Energy Administration, the forestry waste is 900 million lots yearly, with 1/3 of them can be used as fuel.



In the past few years, China's wood pellet production boost quickly. It exported 287,000 tons of wood pellets to Oriental in 2014. But in 2015, the export declines quickly despite Vietnam's low-price competitors, yet the growing Japan market creates brand-new chances.



Owing to the except wood material supply and the raising manufacturing cost, China's wood pellet price enhances to 105 Euro/ton. So it is not as affordable as in the past.



China's wood pellet consumption is mostly in the east and Guangdong province, where coal central heating boilers are outlawed and the wood pellet price is lower.



Vietnam

Vietnam has many large furnishings manufacturers. So there are abundant wood wastes to make wood pellets, and also the price is the lowest in Asia. As well as the huge wood pellet plant in Asia can promote the economic situation of range.



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



Nevertheless, Oriental is most likely to raise the wood pellet import criterion, or announce the bidders in advance. Read Full Report will impede Vietnam's trade with Korean. On the other hand, Japan will certainly prepare comparable policies to prevent Vietnam suppliers from getting into Japan market.



Malaysia, Indonesia and Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all small wood pellets manufacturers and also merchants. In 2015, Indonesia and also Malaysia specifically exported 150,000 heaps as well as 60,000 lots of wood pellets to Oriental. They also export small amount of Hand bit coverings (PKS) to Japan. Intoxicated of supplement, top quality as well as amount, the acquiring cost is high.


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