2024 Japan and South Korea Biomass Pellets Market 

Outlook & Research

The biomass pellet market in Japan and South Korea is expected to see new growth opportunities in 2024. Both governments are taking measures to promote the development of renewable energy, especially biomass energy, as part of their goal of achieving carbon neutrality by 2050. Japan has approved nearly 3.2 GW of biomass power generation capacity, of which more than 500 MW are already in operation. South Korea has consumed about 1.5 to 2 million tons of biomass pellets per year in the past few years, mainly implementing the co-firing of biomass and coal through its renewable energy portfolio standard (RPS) to meet its renewable energy obligations. 
In order to reduce its dependence on fossil fuels, the Japanese government introduced the feed-in tariff system (FIT) in 2012 to promote the introduction of renewable energy. South Korea accelerated the competitive environment in its renewable energy market by implementing the renewable energy portfolio standard (RPS) in 2012. 
Japan's biomass production and imports have been increasing since the FIT system was expanded to include biomass and other renewable energy in 2012. Canada has been Japan's largest supplier of wood pellets, accounting for about 63% of Japan's imports in 2015. South Korea's main source of wood pellet imports is Vietnam, which accounted for 70% of its imports in 2015. 
Due to the two countries' policies and goals to support renewable energy, coupled with the advantages of biomass pellets as a clean energy source, the biomass pellet market in Japan and South Korea is expected to continue to grow, providing new business opportunities for biomass pellet producers, including those located in the southern United States. At the same time, Japan and South Korea have strict requirements for the quality and sustainability of biomass pellets, which is both a challenge and an opportunity for suppliers.