“Japan's biomass power capacity seen growing 50% by early 2020s”   ~ 7 Sept 2017, Nikkei Asian Review

“Japan changes biomass subsidies in response to rapid demand growth”   ~25 Jan 2018, Canadian Biomass Magazine

“FGV seeks to increase exports of palm kernel shell to Japan”   ~24 Aug 2017, The Edge Financial Daily

Over 800 biomass power projects, generating more than 16GW, were approved in Japan by last October. Total biomass demand is projected to almost triple from present rates to 23 million tons in 2025. Wood pellet demand will jump from 500,000 tons to 9.5 million tons in 2025.  The Japanese government has since then stopped the issuance of set price Feed-in-Tariff (FiT) subsidies for new application and replaced with a new tendering system.

With current state of domestic supply infrastructure as well as from Canada, USA & SEAsia – this demand growth raises concerns over biomass fuel availability and sustainability.  How will the Japanese buyers strategize and ensure that “sustainability-certified” biomass are sourced on term contracts (wood pellet, wood chips, PKS) to feed this wave of massive requirement?

“Fate of South Korea’s new coal plants rests with its new President”   ~ 31 May 2017, S&P Global Platts

South Korean wood pellet demand expected to rise sharply”   ~12 July, 2017, GWMI

“SY Energy starts up South Korea's largest pellet plant”   ~25 Jul 2017, Argus Media

In South Korea, biomass sourcing competition rose as IPP and biomass conversion capacity in South Korean grew, resulting soaring imports of wood pellet.  Wood pellet demand is also expected to increase, given the rise in new biomass-consuming facilities scheduled to come on line in the next few years. Imports could reach over 2 million tons this year as utilities continue to transition to a broader use of biomass. The volatile REC prices discourage buyers to engage in long-term offtake agreement.  With relatively lenient sustainability criteria, this demand growth has spurred rapid growth in production capacity in Vietnam to satisfy South Korean tenders.

And on a brighter note, biomass power activities are growing in Taiwan, will the domestic agricultural residues be sufficient to feed the boilers?

Register NOW to attend CMT’s 9th Biomass Pellets Trade & Power conference with your team.  Contact huiyan@cmtsp.com.sg for attractive early bird group discounts.

NOT TO BE MISSED: 

Pre-conference workshop on Biomass Sourcing in Challenging Market to equip you with insights on biomass availability and cost economics;

Post-conference site visit to United Renewable Energy (URE) 20MW biomass power plant at Akita City offering you live experience of biomass utilization in power generation and stock piling facility.

Multiple Benefits to Expand Your Business Leads

• Maximize networking benefits over 4 days, offering vital face-to-face interaction with buyers and users, power utilities, trading companies, industrial boilers & buyers from Japan, South Korea, China and Taiwan
• Japan’s refreshed FIT + biomass power generation situation thus implication on biomass demand/imports requirement
• Latest on South Korea’s import outlook & seize opportunities as consumption of wood pellet soars
• Assess growth of Taiwan’s biomass power 
• Ensure your firm grounding of Japan’s sustainability criteria for biomass (wood pellet, wood chips, PKS, etc)
• Biomass availability, investment & sourcing strategies for Asian buyers
• Evaluate supply and competitive advantage from a cross-regional offerings of wood pellet from Southeast Asia, US, Canada, RFE and Australia
• Assess the cost efficiency and supply sustainability of PKS & other Oil Palm Biomass
• Better your supply chain risk management of wood pellets and other biomass offerings
• Deepen your knowledge on operating IPP biomass power plants