In 2016, Japan\u2019s imports of wood pellets increased 49 percent from the previous year to 347 thousand MT.<\/p>\n
Of these, 261,000 MT, or 75 percent, were imported from Canada, followed by Vietnam (18 percent) and China (6 percent).<\/p>\n
According to industry sources, Canada is the leading supplier due to its competitive prices and quality. Imports of wood pellets are likely to increase in the coming years because the trend of mixing wood pellets with coal for thermal power generation is expected to continue, and the number of small and medium-scale biomass power facilities (below 10,000 kW), which use wood materials (including wood pellets and PKS) is increasing under the FIT system.<\/p>\n
Japan has a zero import tariff for both wood pellets (HS4401.31) and palm kernel shells (HS2306.60.000).<\/p>\n
Japan\u2019s imports of PKS are also increasing as a source for biomass power generation. In 2016, imports of PKS increased by 67 percent from the previous year to 761,410 MT, most of which came from Indonesia and Malaysia.<\/p>\n
Japan has a zero import tariff for PKS. Imports of PKS as well as wood pellets are expected to increase for years to come.<\/p>\n
Wood Pellet Production and Consumption<\/strong><\/p>\n Since the GOJ\u2019s \u201cBiomass Nippon Strategy\u201d was unveiled in 2002, the introduction of pellet boilers and stoves for heating in public facilities and ordinary households has expanded.<\/p>\n Accordingly, the number of plants and the production of pellets have increased significantly. In 2015, Japan\u2019s production of wood pellets was 120,000 MT, and there were 142 plants.<\/p>\n The production of wood pellets in 2015 decreased by 4.8 percent from the previous year as demands for heating decreased mainly due to a mild winter. According to an industry source, production of wood pellets in 2018 is expected to recover to record-high 2014 levels as the use of cogeneration units running on wood pellets has started to spread across Japan.<\/p>\n Accordingly, moving forward, domestic wood pellet suppliers are forecasting an increase in demand. The production scale of wood pellet plants in Japan is very small compared to modern commercial plants in the United States and Europe.<\/p>\n About 60 percent of the plants in Japan produce a mere 100 \u2013 1,000 MT each year. Among the 142 plants, only three plants have production capacity of more than 10,000 MT per year, and two of the three plants are producing wood pellets mainly for coal-fired power plants for mixed combustion.<\/p>\n In Japan, demand for wood pellets by coal-fired power plant operators is strong. The power operators rely on imported wood pellets mainly due to their price competiveness and availability.<\/p>\n As noted in the FY2016 Annual Report on Forest and Forestry in Japan, in order to increase competitiveness of domestically produced wood pellets, MAFF states that the production scale of the wood pellets plants must increase.<\/p>\n Japan is considering establishing its own standards to address concerns about environmental sustainability criteria for biomass products. Accordingly, post will continue to monitor the development of this policy plan.<\/p>","protected":false},"excerpt":{"rendered":" In 2016, Japan\u2019s imports of wood pellets increased 49 percent from the previous year to 347 thousand MT. Of these, 261,000 MT, or 75 percent, were imported from Canada, followed by Vietnam (18 percent) and China (6 percent). According to … Continue reading