SPOTLIGHT Japan Biomass Power Market Secure Sustainable Biomass Fuels CMT’s 1st Japan Biomass Power Market held in Tokyo mid-May was a success. Over 200 participants and 15 exhibitors discussed the current development and outlook of Japan’s emerging biomass power market. JAPAN HAS WITNESSED A SURGE in biomass power plants after a feed-in tariff (FIT) system was introduced in July 2012. Data from Biomass Industrial Society Network showed that there were 84 approved projects by November 2014, including 44 unused wood biomass projects, 36 wood biomass projects, and 4 recycled wood projects. Approved capacity reached 1 200 MW and should consume 24 million m³ of wood biomass. Biomass power outlook It is already 4 years since the FIT Act began, and over 100 wood biomass electric power generation plants are under consideration and another 84 projects have been approved. Interest and expectations are very high amongst stakeholders within the forest industries because the purchasing prices for wood biomass generation are fixed at higher levels. The Japanese biomass business is driven by government policy (FIT) intended to encourage domestic forestry industry. Small-scale biomass plants are mostly sourcing domestic resources, while large-scale biomass plants will mostly source overseas resources. Due to the significantly higher cost of sub-2 MW power generation from unused wood biomass, the FIT purchase price was increased from JPY 32 to JPY 40 per kWh (around EUR 0.23 to EUR 0.29 per kWh) as of April 1, 2015. High transport costs According to Kiyoshi Kamikawa, Japan Paper Association, Japanese paper companies are also trying to take advantage of this opportunity to enter into the energy business and are pushing for 8 projects right now. – The problem is that it is very difficult to secure a stable supply of domestic wood biomass because of fragmented small forest ownership and the high cost of timber transportation. There are few projects considering the import of wood biomass from overseas, but it could be a potential source in the future, depending on the prices, he said. Domestic sources cannot meet demand Of Japan’s total 364 560 km² landmass area, about 66 percent is under forest cover, of which 40 percent is planted forest. The rate of annual growth of planted forest is 100 million m³ per annum, however the quantity of wood used is only 25 million m³. Thinned and abandoned wood represents 20 million m³, because of high transport costs. The Government aims for the national rate of wood selfsufficiency 16 Bioenergy International No 80, 4-2015 to increase from 28 to 50 percent by 2020, and for the use of wood thinnings for energy to increase to 6 million m³. – The fuel demands for authorised wood biomass generation in FIT is vast with around 24 million m³, so the potential of Japanese wood resources is enormous. But it seems only a few million m³ are being provided. Most plants cannot get the wood that they need, said Ms Miyuki Tomari, Biomass Industrial Society Network. Look outside Japan Most woody biomass currently being consumed for fuel is being sourced from within Japan: locally sourced and imported wood pellets and woodchips; wood processing residues; construction and demolition waste; forest pruning and thinning residues; harvesting residues; bark. Imported biomass is expected to represent around 10-15 percent of the total biomass fuel in Biomass Generation Authorised Situation in FIT (New, operational at the end of 2014; obtained authorization as of January 2015) Methane Unused General Recycled Waste Total timber timber * timber Operational 38 9 5 1 24 77 Authorisation 82 44 36 4 55 221 Operational (kW) 7,829 30,011 30,075 317 67,784 136,016 Authorisation (kW) 22,482 327,597 866,240 11,377 274,703 1,76,163 * General timber: Sawmill residues, imported wood, PKS and so on Source: Ms Miyuki Tomari, Biomass Industrial Society Network Thai pellet King? According to Champ Srichokechai, CEO, Euro Pellet Co., Ltd, the company currently runs the largest wood only pellet plant in the country. – It is very difficult to secure a stable supply of domestic wood biomass because of fragmented small forest ownership and the high cost of transportation, highlighted Kiyoshi Kamikawa, Japan Paper Association.
Bioenergy no 4 july 2015
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