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Korea looks to Indonesia for wood pellets

September 6, 2013, Jakarta - According to a report in the Jakarta Post, South Korea is looking to suppliers and partners in Indonesia for its forecast demand for pellets in the coming years.


September 6, 2013
By Scott Jamieson

Han
Gyu-seong, chairman of Korea Association of Pellet, said that abundant forests in Indonesia have the potential to supply Korea with
much-needed biomass energy. He made the statement
before around 50 Korean business delegates during the “Biomass Industry
in Indonesia” business forum organized by the South Korea Embassy in
Jakarta on Thursday.

The forum discussed the prospects and challenges in developing Indonesia’s biomass potential, specifically wood pellets. South Korea saw an increase in pellet consumption in the past year, with 2013
figures estimated at 500,000 tons, compared to 174,000 tons in 2012.

Korea
is currently looking for biomass sources overseas, including from
Indonesia, as the East Asian country is enforcing a 2012 energy policy
mandating firms to resort to renewable energy to cut carbon emissions. It is also targeting a 20 percent boost in renewable energy use as well as aiming to reduce fossil fuel consumption, the article reports.

“Korea
is the world’s 10th-largest energy consumer, fifth-largest oil
importer, second-largest coal importer. Sixty-four percent of its
electricity is produced from fossil fuels,” Han said.

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To reach
their objective, Korean firms have sought investments in a number of
Asian countries for the development of wood pellets, mainly Vietnam and
Malaysia. Korea imported 122,447 tons of wood pellets in 2012, mainly from Russia, Malaysia and Vietnam.

According
to data from Korea, Indonesia offers the cheapest pellet, with the
cost, insurance and freight (CIF) price of US$ 131 per ton, below
Vietnam’s US$ 144 per ton, and Malaysia’s US$ 141 per ton.

Read the full story here.


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