Biomass Group ready to cater the demand for ‘Sustainable and Ethical’ biomass in Asia
Driven by pledges made under the Paris Agreement to reduce greenhouse gas emissions, and by ambitious national renewable energy targets, Japan and South Korea will see a rapid expansion in biomass-fired power and CHP generation over the next decade. This should create a large new market – rivalling that of Europe – for global biomass suppliers. Biomass demand in these countries will expand quickly as policy mechanisms seek to boost the output of renewable energy and reduce reliance on ageing coal and nuclear plants.
To date, South Korea has been sourcing lower cost pellets, most of it from Vietnam. The government estimates that by 2020, 75-80% of pellets consumed in the country will need to be imported. Until now, almost all of South Korea’s demand has been satisfied by spot volumes purchased through short term tenders. However, as demand rises, the ability of the market to supply such tonnages without investing in new supply capacity will become increasingly difficult.
Canada is Japan’s biggest source of wood pellets (75% of Japan’s imports in 2016). Other Asian suppliers such as Malaysia, Indonesia and Vietnam can all compete on a cost-per-metric ton basis; however, Japanese buyers maintain strict criteria for pellet sustainability and quality. Japan, concerned with reliability of supply, is willing to sign long-term contracts with producers able to guarantee sustainability, supply quality and security of supply – Biomass Group is the perfect fit to address these criteria!
Driven by pledges made under the Paris Agreement to reduce greenhouse gas emissions, and by ambitious national renewable energy targets, Japan and South Korea will see a rapid expansion in biomass-fired power and CHP generation over the next decade. This should create a large new market – rivalling that of Europe – for global biomass suppliers. Biomass demand in these countries will expand quickly as policy mechanisms seek to boost the output of renewable energy and reduce reliance on ageing coal and nuclear plants.
To date, South Korea has been sourcing lower cost pellets, most of it from Vietnam. The government estimates that by 2020, 75-80% of pellets consumed in the country will need to be imported. Until now, almost all of South Korea’s demand has been satisfied by spot volumes purchased through short term tenders. However, as demand rises, the ability of the market to supply such tonnages without investing in new supply capacity will become increasingly difficult.
Canada is Japan’s biggest source of wood pellets (75% of Japan’s imports in 2016). Other Asian suppliers such as Malaysia, Indonesia and Vietnam can all compete on a cost-per-metric ton basis; however, Japanese buyers maintain strict criteria for pellet sustainability and quality. Japan, concerned with reliability of supply, is willing to sign long-term contracts with producers able to guarantee sustainability, supply quality and security of supply – Biomass Group is the perfect fit to address these criteria!
Competitive differentiation / advantage of the Biomass Group is founded on Supplies which is designed to deliver socio-economic impact for our supply partners and aggregates 50,000+ large and smallholder farmers who have planted 100+ million Gliricidia trees that can be harvested by 2021. We motivate them to both plant Gliricidia trees and harvest fuelwood – by coppicing branches which leaves the tree trunk and roots intact and ensure sustainable supply (regeneration). Our focus has always been to have 100% oversupply which is the key to maintaining security of supply at a competitive price.
We have created an out-grower model to sustainable biomass production, simultaneously mitigating climate change, enhancing food production, promoting soil conservation, and advancing economic & social well-being at the smallholder level. Our biomass is RSB (Roundtable on Sustainable Biomaterials) certified, thus traceable, and our activities will be VCS/CCBS (voluntary carbon market) certified in 2020.
References:
https://www.hawkinswright.com/bioenergy/biomass-demand-in-japan-korea