Notes

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



Japan

Promote policies

Japan has actually created a collection of stimulate steps to promote renewable energy production and biomass power generation, such as the Basic Law of promoting biomass energy application in 2009 as well as state planning to advertise biomass energy application.



The most significant plan is Fixed-price Assistance for Renewable Energy (FIT) executed because July 2012. According to this plan, Electric power firms are required to have specific 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 usage grows up quickly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile become a lot more diversified. Japan ministry of economy, profession and market (METI) re-exam the purchase rate of FIT yearly, so the renewable resource expense is unstable for power generation firms.



Production, consumption and cost

According to the data of FAOSTAT in 2016, the domestic wood pellets production is 90,000 tons in the past 5 years. But Japan require to import more wood pellets because of the huge intake. In 2015, it import 230,000 lots from Canada, China and Vietnam. Given the residential production and import volume, Japan's wood pellets usage is 320,000 lots in 2015.



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



The planned biomass power plants

Considering that the apply of suit 2011, there have actually been more than 100 biomass nuclear power plant building and construction projects, and 84 of them have actually been authorized.



The government aims to boost the proportion of renewable energy by 2030, with solar power taking up 15%, and also biomass as well as hydropower 10%. Besides, the federal government plan to construct a biomass energy zone to develop a thorough biomass power application system.



Oji Green Resources and Mitsubishi Paper Mills also constructed a joint venture enterprise to develop a 75MW biomass nuclear power plant in Aomori. It is expected to start manufacturing in 2019.



Future biomass pellets demand

FIP plan will remain to advertise 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 resource plan

Renewable Profile Requirement (RPS) plays a crucial function is Korean's wood pellet market since 2012. It needs the power generation business to raise the percentage of renewable energy from 2% to 10%.




Biomass energy is expect to use up 50% -60% of sustainable power, amongst wind, solar, as well as water powers. With the execute of RPS, the need and import of wood pellets in Korean boost quickly.



RPS can minimize the power generation cost by affordable innovation infiltration as well as raise renewable energy supply. Yet the nuclear power plant owners have to raise their management cost.



Production and need

According to the data of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not meet residential demand As reported by Bloomberg New Power Money, 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, and also Australia.




Future need.

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



China

Renewable resource plan

China's renewable energy industry grows up rapidly in the last few years. In 2013, China's National Energy administration released a direction on developing a renewable energy profile standard. chicken manure pellet machine for sale calls for renewable resource should occupy 15% of complete energy intake by 2020, and also 20% in 2030. According to this policy, the power generation firm need to use specific section of renewable resource. However the supervision as well as charge system is not total.



Production, export and consumption

China has bountiful source of biomass, consisting of plant waste, branch, animal waste, natural waste water, urban trash. According to the data of National Power Administration, the forestry waste is 900 million tons every year, with 1/3 of them can be made use of as fuel.



In the past few years, China's wood pellet manufacturing increase quickly. It exported 287,000 lots of wood pellets to Oriental in 2014. But in 2015, the export declines swiftly despite Vietnam's low-price competitors, but the expanding Japan market produces new possibilities.



Owing to the short of wood product supply and also the raising manufacturing cost, China's wood pellet price raises to 105 Euro/ton. So it is not as affordable as before.



China's wood pellet usage is mostly in the east and also Guangdong district, where coal boilers are outlawed as well as the wood pellet price is lower.



Vietnam

Vietnam has numerous large-scale furniture suppliers. So there are bountiful wood wastes to make wood pellets, and also the price is the lowest in Asia. As well as the large wood pellet plant in Asia can advertise the economic situation of range.



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



However, Oriental is most likely to increase the wood pellet import standard, or announce the bidders beforehand. These policies will certainly hinder Vietnam's trade with Oriental. At the same time, Japan will certainly prepare similar plans to hinder Vietnam dealers from getting into Japan market.



Malaysia, Indonesia as well as Thailand

Compared to Vietnam, Malaysia, Indonesia and Thailand are all small wood pellets producers and exporters. In 2015, Indonesia as well as Malaysia respectively exported 150,000 loads and 60,000 lots of wood pellets to Korean. They also export small amount of Hand kernel coverings (PKS) to Japan. underwater pelletizer of supplement, top quality as well as quantity, the getting cost is high.


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