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The Latest Release Of The Asian Biomass Supply And Demand Report In 2030
- May 19, 2018 -

Asian demand for biomass is growing rapidly.The number of wooden pellets imported to South Korea and Japan has grown exponentially over the past few years.In 2017, South Korea imported 2.4 million tons of wood pellets, 20 times more than in 2012.Japan is a smaller market, but its growth is impressive.Japan imports more than 500,000 tonnes in 2017, a sevenfold increase from 2012.The PKS (palm kernel shell) consumption also increased at a similar rate, reaching 1.5 million tons in 2017.

South Korea's biomass demand is supported by the renewable energy portfolio standard, which aims to achieve a 10% share of renewable energy by 2024.In order to meet its RPS requirements, companies with the obligation to generate renewable electricity or buy renewable energy certificates (REC) can generate electricity from renewable sources.But there is a lot of uncertainty in South Korea's subsidy system.Changes in the REC weight of certain technologies, including wood pellets, may significantly reduce their value.

In Japan, the market is supported by the online electricity price (FIT) scheme, which provides 20 years of subsidies to companies that produce renewable energy.Biomass has proved very popular.By March 2017, nearly 12GW of biomass energy projects have been approved under the FIT program, far exceeding the figure of 2.7 to 4GW in the best energy mix scenario in Japan in 2040.It forced the Japanese economy, trade and industry (METI) to take action to curb the growth of biomass energy, and from 2018 to start > 10 mw biomass energy application has been removed from the main FIT and converted to the new system of bidding.

Understandably, the sheer size of this potential growth in biomass demand has attracted a lot of attention.Global biomass producers and users are eyeing Asian markets to see how the growing market affects existing global trade flows.The outlook for Asian biomass demand is far from certain, and a variety of variables may limit its growth.

For months, Hawkins Wright has conducted extensive field trips, meetings, quantitative and qualitative analysis to determine the true nature of the emerging biomass market.The study provides a unique insight into a new 120-page report on biomass demand and supply strategy assessment in the Asia and Pacific region, looking forward to 2030.

An important part of the study is identifying the source of biomass that can meet this new market demand.Hawkins Wright has provided detailed answers to questions about the amount of biomass that will be needed and where these quantities might come from.Is there enough biomass to meet demand?

The report presents key assessment data on the number and cost of three major types of biomass: wood pellets, wood chips and PKS (palm fruit shells).It considers not only domestic resources but also resources for economic transport from the raw material supply region of the Pacific rim.Southeast Asia (Vietnam, Indonesia, Malaysia, Thailand and the Philippines), northeast Asia (China and Russia) in the east, Australia, North America (southern British Columbia, the United States and the United States in the Pacific northwest) and Latin America.

The report makes a unique and detailed analysis of greenhouse gas emissions from the various biomass supply chains that could serve Asian utilities.Another key element of the study is assessing the economics of biomass power generation in Japan and South Korea.By investigating the various costs and revenue sources associated with new power stations and hybrids, Hawkins Wright has been able to calculate these (hypothetical) projects to pay for their biomass fuel.These insights will help project developers and biofuels suppliers determine whether their businesses are economically viable.

Finally, the report gives a detailed assessment of some of the main risks of this growing market investor.Political risk, logistics, sustainability, bank capacity and raw material supply risk are all important factors that must be considered by all companies operating in this market.

The report can be obtained from www.hawkinswright.com/bioenergy/asian-pacific-biomass.The subscription includes a 120 page report, along with the accompanying Microsoft Excel database, which provides detailed information on all major biomass power projects planned by Japan and Korea.