Notes

Asia wood pellet market analysis as well as prediction<br>
In Asia, Japan as well as Korean are major wood pellet importers, while China, Thailand, Vietnam, Indonesia and Malaysia are primarily wood pellets exporters. As richi pellet mill in Europe is anticipated to level off, Asia will certainly be another drive engine in the biomass pellet industry.



Japan

Stimulate policies

Japan has actually created a series of promote actions to advertise renewable energy manufacturing and also biomass power generation, such as the Basic Law of advertising biomass energy application in 2009 and also state preparation to advertise biomass power application.



The most significant policy is Fixed-price Support for Renewable Resource (FIT) accomplished since July 2012. According to this plan, Electric power firms are obliged to have certain part of biomass energy power generation, like solar photovoltaics as well as biomass power at fixed price as well as period. Ever since, the wood pellets consumption grows up swiftly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile end up being a lot more varied. Japan ministry of economic situation, trade as well as industry (METI) re-exam the acquisition cost of FIT each year, so the renewable resource expense is unstable for power generation companies.



Manufacturing, consumption as well as cost

According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 bunches in the past 5 years. Yet Japan require to import more wood pellets as a result of the large consumption. In 2015, it import 230,000 bunches from Canada, China and also Vietnam. Provided the domestic production and import volume, Japan's wood pellets intake is 320,000 bunches in 2015.




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



The prepared biomass power plants

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



The federal government aims to enhance the percentage of renewable resource by 2030, with solar energy using up 15%, and also biomass and hydropower 10%. Besides, the federal government strategy to develop a biomass power area to develop a comprehensive biomass energy usage system.



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



Future biomass pellets demand

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



Oriental

Renewable resource policy

Renewable Profile Requirement (RPS) plays an essential role is Korean's wood pellet market given that 2012. It requires the power generation firm to raise the proportion of renewable energy from 2% to 10%.



Biomass power is anticipate to use up 50% -60% of sustainable power, among wind, solar, as well as water powers. With the implement of RPS, the demand as well as import of wood pellets in Oriental boost quickly.



RPS can lower the power generation cost by affordable modern technology infiltration as well as raise renewable resource supply. But the power plant owners need to enhance their management price.



Production and demand

According to the data of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not satisfy domestic demand As reported by Bloomberg New Power Money, Korean's wood pellet need 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 comes from Vietnam, as well as others from Malaysia, Canada, America, Russia, Indonesia, and also Australia.



Future need.

As reported by Power Information Administration (EIA), Korean's need for wood pellets keep boosting, driven by the RPS policy. Oriental government has actually established an objective to import 5 million tons of wood pellets by 2020 to meet 75% of residential need. extruder pellets will certainly be mostly imported from Canada, Southeast Asia and America.



China

Renewable energy policy

China's renewable energy market matures rapidly in recent years. In 2013, China's National Energy management released a guideline on constructing a renewable resource profile requirement. It needs renewable resource should occupy 15% of overall energy usage by 2020, as well as 20% in 2030. According to this regulation, the power generation firm must use certain section of renewable energy. Yet the guidance and fine system is not total.




Production, export as well as usage

China has abundant source of biomass, consisting of crop waste, branch, pet waste, natural drainage, urban garbage. According to the information of National Energy Management, the forestry waste is 900 million lots each year, with 1/3 of them can be used as fuel.



In the past couple of years, China's wood pellet manufacturing boost quickly. It exported 287,000 lots of wood pellets to Oriental in 2014. However in 2015, the export decreases quickly despite Vietnam's low-price competition, but the growing Japan market produces new chances.



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



China's wood pellet consumption is generally in the east and also Guangdong district, where coal boilers are prohibited and the wood pellet cost is lower.



Vietnam

Vietnam has lots of large furniture makers. So there are plentiful wood wastes to make wood pellets, and the expense is the lowest in Asia. As well as the huge wood pellet plant in Asia can promote the economy of range.



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



However, Korean is most likely to elevate the wood pellet import criterion, or introduce the prospective buyers in advance. These plans will certainly prevent Vietnam's trade with Korean. Meanwhile, Japan will certainly formulate comparable plans to prevent Vietnam suppliers from entering Japan market.



Malaysia, Indonesia and also Thailand

Compared to Vietnam, Malaysia, Indonesia and also Thailand are all little wood pellets producers as well as merchants. In 2015, Indonesia and Malaysia respectively exported 150,000 heaps and also 60,000 lots of wood pellets to Oriental. They also export small amount of Palm bit coverings (PKS) to Japan. Intoxicated of supplement, quality and quantity, the acquiring rate is high.


Read More: https://pelletrichi.hatenadiary.com/entry/2022/06/20/153836