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February 5, 2018

Current trends in Japanese and South Korean wood pellet demand

Current trends in Japanese and South Korean wood pellet demand
    Biomass demand in Japan is primarily driven by three policy components: The Feed in Tariff (FiT) support scheme for renewable energy, coal thermal plant efficiency standards, and carbon emissions targets.    As FutureMetrics reports, the FiT offers independent power producers (IPPs) a set price for renewable energy over an extended contract period – 20 years for biomass energy. Currently, under the FiT, electricity generated from “general wood,” which includes pellets, imported woodchips, and palm kernel shell (PKS), receives a subsidy of 21 ¥/kWh, down from 24 ¥/kWh prior to Sept. 30, 2017. However, the ...

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