There have been many forecasts regarding potential wood pellet demand in Japan and South Korea. For demand to materialize and support stable supply, the price that is paid for the pellets must be high enough and have sufficient tenor to support the investments into new production capacity. Source: Timberbiz
This white paper has been produced by FutureMetrics and titled Japan and South Korean Wood Pellet Markets: Insights into their ability to pay for pellets. It provides insight into how the Japanese and South Korean policies do or do not support the power producers’ ability to pay for pellet fuel under sustainable and equitable long-term offtake agreements.
FutureMetrics says it has been concerned about the stability of the South Korean demand for years and the recent data continues to support these concerns.
However, the Japanese feed-in-tariff (FiT) provides a stable foundation for biomass demand. The Japanese policy offers more certainty and allows for longer term contracts.
This paper is a short paper and is to be followed by a more detailed report regarding expected future demand from independent power producers in the region. The comprehensive report on the Japanese power markets will be available in November.
The paper can be downloaded from the FutureMetrics website under the “Free Whitepapers” section of the home page www.FutureMetrics.com