Notes

Asia wood pellet market analysis and 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 expected to level off, Asia will certainly be an additional drive engine in the biomass pellet industry.



Japan

Boost policies

Japan has drawn up a series of promote measures to promote renewable energy production and biomass power generation, such as the Basic Regulation of advertising biomass power application in 2009 and state planning to promote biomass power application.



One of the most significant policy is Fixed-price Assistance for Renewable Resource (FIT) executed because July 2012. According to this policy, Electric power business are obliged to have certain portion of biomass energy power generation, like solar photovoltaics as well as biomass power at set price and period. Ever since, the wood pellets intake grows up quickly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio become 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 price is unpredictable for power generation business.



Production, usage as well as rate

According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 bunches in the past 5 years. But Japan need to import more wood pellets as a result of the huge intake. In 2015, it import 230,000 bunches from Canada, China as well as Vietnam. Provided the residential production and import quantity, Japan's wood pellets intake is 320,000 heaps in 2015.



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



The intended biomass power plants

Given that the implement of FIT in 2011, there have actually been greater than 100 biomass nuclear power plant construction projects, and also 84 of them have been authorized.



The federal government aims to raise the proportion of renewable energy by 2030, with solar power occupying 15%, and biomass as well as hydropower 10%. Besides, the government plan to develop a biomass power area to develop a detailed biomass power usage system.



Oji Green Resources and Mitsubishi Paper Mills also built a joint endeavor enterprise to construct a 75MW biomass power plant in Aomori. It is expected 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 resource policy

Renewable Portfolio Standard (RPS) plays a vital role is Korean's wood pellet market since 2012. It requires the power generation firm to increase the percentage of renewable energy from 2% to 10%.



Biomass power is expect to use up 50% -60% of sustainable power, amongst wind, solar, and also water powers. With the implement of RPS, the demand and import of wood pellets in Oriental boost quickly.



RPS can decrease the power generation cost by affordable technology infiltration and raise renewable energy supply. But the power plant proprietors need to increase their management price.



Production and also demand

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



Future demand.

As reported by Energy Information Management (EIA), Korean's demand for wood pellets maintain boosting, driven by the RPS policy. Oriental government has actually established a goal to import 5 million tons of wood pellets by 2020 to meet 75% of residential need. They will certainly be generally imported from Canada, Southeast Asia as well as America.



China

Renewable energy policy


China's renewable resource industry grows up swiftly in recent years. In 2013, China's National Power administration published a guideline on building a renewable resource profile criterion. It calls for renewable energy ought to use up 15% of total power usage by 2020, as well as 20% in 2030. According to this law, the power generation business should use specific portion of renewable energy. Yet the guidance and also charge system is not complete.



Production, export and consumption

China has plentiful resource of biomass, including crop waste, branch, animal waste, natural drainage, urban trash. According to the information of National Energy Administration, the forestry waste is 900 million loads each year, with 1/3 of them can be made use of as fuel.



In the past few years, China's wood pellet production boost rapidly. wood pellet maker for sale exported 287,000 lots of wood pellets to Korean in 2014. But in 2015, the export decreases rapidly when faced with Vietnam's low-price competition, however the growing Japan market produces new possibilities.



Owing to the short of wood product supply as well as the boosting manufacturing price, China's wood pellet price enhances to 105 Euro/ton. So it is not as competitive as in the past.



China's wood pellet usage is primarily in the eastern as well as Guangdong province, where coal boilers are banned as well as the wood pellet expense is lower.




Vietnam

Vietnam has numerous massive furniture manufacturers. So there are plentiful wood wastes to make wood pellets, as well as the price is the lowest in Asia. And also the large wood pellet plant in Asia can promote the economy of scale.



Vietnam is a major wood pellet merchant in Asia. It takes up 70% of Korean wood pellet market, as well as uses affordable rate as low as 90 Euro/ton to Korean as well as Japan market. Besides, the transport expense from Vietnam to Korean is fairly reduced.



Nonetheless, Korean is most likely to elevate the wood pellet import standard, or announce the prospective buyers ahead of time. manure pelletizer will prevent Vietnam's trade with Korean. Meanwhile, Japan will create similar plans to hinder Vietnam dealers from entering Japan market.



Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia and Thailand are all little wood pellets manufacturers as well as exporters. In 2015, Indonesia and Malaysia respectively exported 150,000 loads and also 60,000 lots of wood pellets to Oriental. pellet machine olx export percentage of Hand kernel shells (PKS) to Japan. Drunk of supplement, top quality and also amount, the getting rate is high.


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