Overview
In the past few years, imports of wood pellets in South Korea and Japan have grown rapidly. In 2017, South Korea imported 2.4 million tons of wood pellets, while Japan imported more than 500,000 tons (0.5Mt). At the same time, the palm kernels of the two countries. Shell (PKS) consumption has also grown rapidly, reaching 1.5 million tons (1.5Mt) in 2017.
Demand for local biomass is also growing in Japan and South Korea. The two countries used approximately 4.3 million dry tons (BDMT) of wood chips in 2017, most of which came from the local area. Due to preferential subsidies for locally sourced biomass from both countries. This number may increase significantly in the future.
For projects above 2MW, Japan's feed-in tariff subsidy (FiT) supports local forestry waste at 32 yen/kWh, and for projects below 2MW, it is 40 yen/kWh. In contrast, use The project to import biomass is 21 yen / kWh (previously 24 yen / kWh).
At the same time, the South Korean government recently approved a revision of the country's renewable energy portfolio standard policy, which will increase subsidies to local biomass. Biomass power plants use domestic 'unused woody biomass', such as forest waste. Things, etc., will be eligible for a new weight of 1.5-2.0 REC/MWh. However, the support for power projects using imported fuel will be reduced from the current 1.5 REC/MWh to the completion of the construction plan for the first half of 2019, which is 1.0 REC/ MWh, and the project scheduled to be completed in the second half of 2019, is 0.5REC/MWh.
Korea
The impact of these changes is to encourage the rapid development of new dedicated biomass projects in Korea. Therefore, three new projects have recently been approved.
SMG Energy's S1 biomass plant is a 100MW project in Gunsan, South Korea, launched by development partners SMG Energy, E-Tech Construction and SK Construction on July 6. After commissioning in 2020/21, it will use About 400,000 tons / year of wood pellets.
CGN's 109MW dedicated plant in Daesan achieved financial revenues in June. Starting in the fourth quarter of 2020, it will use up to 400,000 tons/year of pellets, of which 315,000 tons/year will be supplied by Canadian manufacturer Pinnacle.
GS EPS has confirmed that it is advancing the plan for the second 105MW dedicated biomass power plant Dangjin 2. The plant's fuel is expected to be a combination of 200,000 tons/year of wood chips and 300,000 tons/year of pellets. It will be launched in 2021. .
Japan
Japan's new biomass power generation project is also developing rapidly. Several projects have achieved financial settlement in 2018, including:
Air Water& Energia Power Onahama Corporation is launching a 75MW project in Fukushima Prefecture. It is expected to begin operations in the first half of 2021 and will use a combination of wood pellets and palm kernel shell PKS.
Kansai Electric Power will begin construction of a 75MW dedicated biomass power plant in Kanda City, Fukuoka Prefecture through its subsidiary Biopower Kanda Goudou Gaisha. The power plant will be dominated by wood pellets, which will be passed by French utility company Engie and Japan's Mitsui Trading Co. The annual contract is provided. The contract will begin in 2021, when the plant will begin operation.
Renova has reached a financial settlement with its 75MW Kanda Biomass Energy Project, developed in collaboration with Sumitomo Forestry, Veolia, Kyuden Mirai Energy and Mihara Group. The plant will be in 2021 It began operations in June and will use a combination of wood pellets, PKS and local forestry waste. The factory's pellet supply will be handled by Toyota Tsusho, and 170,000 tons/year by Pinnacle.
These projects will increase Asia's huge demand for biomass. According to the report of sawdust particles in the second quarter of 2018, the demand for industrial pellets in Asia in 2018 may reach 4.9 million tons, up 49% from 2017, while on wood chips and PKS. The demand will also increase.
