Business Opportunity
Wood Pellet as excellent alternative for renewable energy source
Input Biomass Fuel for Each Type of Biomass Power Generation
In Japan, according to a survey taken by the Japan Woody Bioenergy Association: with 55 biomass power generators around 33% of input fuel is provided by import biomass fuel.
Wood Pellets Import
According to Japan’s trade statistics
The import of WP has increased around 16 times from 2014 to 2019. As it shows on the Figure, Vietnam and Canada are the largest suppliers of Japan’s wood pellet import, while Indonesia contributes only insignificant number of supplies
Needed Wood Pellets import in the Future
Indonesia exported 152.000 ton of WP in the first quarter of 2023, up by 45% on the year as the country gradually increased output capacity. Of this, Indonesia exported 141.000 ton to South Korea and 11.000 ton to Japan.
The potential market in Japan is widely open and Indonesia shall increase the market share. The needed of WP Import in the future for Japan market is shown on the Figure
Indonesia is one of the countries with the largest tropical forest in the world having 40.000 variety of plant. The geographical and landscape of Indonesia is very suitable for planting the tree for the source of WP such as Acacia, Eucalyptus, and Red Caliandra. With an abundant source of raw material as a feedback to secure the supply of WP, the number of producer and its production capacity is very small, among other are :
The significant growth in demand of WP in Japan and also in global market has gradually increase the number of WP producer across the country.
Feedstock from the upstream to downstream industry shall be secured.
MARKETING
GSM projection for export to Japan market, contribute 0.10% on the market share. It shall make the sales projection approximately 4.400 ton/year with the value of SD 893.200/year.
Based on forecast, the growth of demand for import WP in Japan is around 19% ~ 20%.
Japan has imported WP year-on year in 2022 amounted to 4.4 million ton with the average price grew 13% from the previous year to USD 203 per ton. That makes the value of import has reached approximately USD 895 million.
To ensure the feedstock, GSM has developed a strong and strategic business relation with several producers
- PT. Thaka Sukses Mandiri,
- PT. Fajar Energy Biomassa
which produce export quality product and production capacity no less than 2.000 ton/year.