Japan is the fastest-growing import market in the world for wood pellets, driven by the government’s policy initiatives to mitigate pollution from coal and supported by a long-term feed-in-tariff (FIT) for biomass energy. The country aims to reduce greenhouse gas emissions to zero to make Japan a carbon-neutral, decarbonized society by 2050 and aims to reduce its greenhouse gas emissions by 46 per cent by 2030. Canadian wood pellets are part of the solution for Japan.

Canada is well-positioned to support Japan’s climate goals. WPAC recently conducted a Canada-Japan greenhouse gas (GHG) study, which examined GHG emissions for BC wood pellets versus coal use in Japan. The study found that wood pellets fired in Japan produced only 8.37 per cent of the GHG emissions produced by coal (more than a 91-per-cent reduction).

Canadian wood pellet growth in Japan
Over the past decade, Canadian pellet exports to Japan grew 27-fold from 2014 (62,000 tonnes) to 2023 (1.70 million tonnes). Thirty percent of Canadian wood pellet exports to Japan come from Alberta (the other 70 percent from British Columbia). In 2023, approximately 550,000 tonnes of wood pellets worth $107 million to Japan were exported to Japan, accounting for a third of the value of Alberta’s forest products exports to Japan.

In 2023, more than five per cent of Japan’s electricity was generated from renewable biomass (in approximately 240 biomass power plants). Biomass’ share of the electricity mix is now approaching that of nuclear, which is barely ahead at seven per cent.

Japan is presently consuming 6.1 million tonnes of wood pellets annually. For the 12 months ending October 31, 2024, Vietnam had the largest market share at 50 per cent, providing three million tonnes. Canada and the United States were tied for second, each with a 20-per-cent marketshare. Both countries provided 2.3 million tonnes to Japan. Japanese wood pellet consumption is projected to grow by another 30 per cent by 2030, presenting even more opportunities for Canadian wood pellet exports.

Source: canadianbiomassmagazine