Notes

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



Japan

Promote plans

Japan has prepared a series of promote steps to advertise renewable energy manufacturing and also biomass power generation, such as the Basic Regulation of promoting biomass energy application in 2009 as well as state planning to advertise biomass power application.



The most influential plan is Fixed-price Support for Renewable Energy (FIT) performed given that July 2012. According to this plan, Electric power firms are obliged to have particular portion of biomass energy power generation, like solar photovoltaics and biomass energy at set price and duration. Since then, the wood pellets usage matures quickly in Japan.



After the Fukushima nuclear accident in 2010, the power generation portfolio come to be more diversified. Japan ministry of economic situation, trade as well as market (METI) re-exam the purchase price of FIT every year, so the renewable resource expense is unpredictable for power generation business.




Production, consumption as well as rate

According to the data of FAOSTAT in 2016, the domestic wood pellets production is 90,000 loads in the past 5 years. But Japan require to import even more wood pellets due to the large intake. In 2015, it import 230,000 heaps from Canada, China and also Vietnam. Provided the domestic manufacturing and also import volume, Japan's wood pellets consumption is 320,000 bunches in 2015.



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



The planned biomass nuclear power plant

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



The federal government intends to boost the percentage of renewable energy by 2030, with solar energy taking up 15%, and biomass and also hydropower 10%. Besides, the federal government plan to develop a biomass energy area to establish an extensive biomass power usage system.



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



Future biomass pellets demand

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



Oriental

Renewable energy policy

Renewable Portfolio Standard (RPS) plays an important role is Korean's wood pellet market because 2012. It requires the power generation business to increase the proportion of renewable energy from 2% to 10%.



Biomass power is expect to take up 50% -60% of renewable power, amongst wind, solar, and water powers. With the apply of RPS, the need and import of wood pellets in Oriental rise quickly.



RPS can decrease the power generation cost by competitive innovation seepage and increase renewable resource supply. But the power plant owners have to enhance their monitoring expense.



Manufacturing and also demand

According to the information of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not fulfill residential demand As reported by Bloomberg New Power Finance, 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 comes from Vietnam, and also others from Malaysia, Canada, America, Russia, Indonesia, and also Australia.



Future need.

As reported by Power Details Management (EIA), Korean's need for wood pellets maintain increasing, driven by the RPS plan. Oriental federal government has set a goal to import 5 million lots of wood pellets by 2020 to meet 75% of domestic demand. They will certainly be primarily imported from Canada, Southeast Asia and also America.



China

Renewable resource policy

China's renewable energy industry grows up quickly in recent years. In 2013, China's National Power administration released a direction on constructing a renewable resource portfolio criterion. kl230 animal feed calls for renewable energy must use up 15% of overall power usage by 2020, as well as 20% in 2030. According to firewood pellet machine , the power generation business should utilize particular portion of renewable resource. But the guidance and also charge system is not total.



Manufacturing, export as well as usage

China has bountiful source of biomass, consisting of crop waste, branch, animal waste, natural drainage, city garbage. According to the information of National Energy Administration, the forestry waste is 900 million heaps each year, with 1/3 of them can be used as gas.



In the past couple of years, China's wood pellet manufacturing increase quickly. It exported 287,000 tons of wood pellets to Oriental in 2014. Yet in 2015, the export declines swiftly despite Vietnam's low-price competitors, however the expanding Japan market creates new chances.



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



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



Vietnam

Vietnam has several massive furnishings makers. So there are bountiful wood wastes to make wood pellets, as well as the expense is the lowest in Asia. As well as the large wood pellet plant in Asia can advertise the economy of scale.



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



Nonetheless, Oriental is most likely to raise the wood pellet import criterion, or announce the prospective buyers in advance. These plans will hinder Vietnam's trade with Oriental. On the other hand, Japan will certainly draw up comparable policies to hinder Vietnam dealers from entering 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 respectively exported 150,000 loads and 60,000 lots of wood pellets to Oriental. They likewise export percentage of Hand bit shells (PKS) to Japan. Drunk of supplement, top quality and also quantity, the buying rate is high.


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