South Korea prides itself on being one of the leaders in advanced biomass energy technology. However, the country imported 3.78 million tons of wood pellets in 2022. This accounted for more than 84% of its total wood pellet consumption. Among these, wood pellet exports from Vietnam was 2.2 million tons. This volume accounted for nearly 60% of total wood pellet import volume into Korea.
South Korea currently ranks ninth globally in greenhouse gas emissions. In 2020, total quantity of emission reached 656.2 million tons of CO2, a 6.4% decrease compared to 2019. Notably, emissions from the energy sector accounted for 86.8% of the country’s total greenhouse gas emissions. Consequently, Korea is undergoing an energy transition to fulfill its commitment to reducing carbon emissions.
In Korea’s 2018 electricity mix, coal-fired power accounted for 41.9% of the total electricity generation. Nuclear power, liquefied natural gas, renewable energy accounted for 23.4%, 26.8%, and 6.2%, respectively. The other sources made up the remaining 1.7%.
Under South Korea’s Power Plan, the country aims to eliminate coal power by the year of 2023. According to the plan, nuclear power will account for 34%, renewable energy makes up 21.6%. Hydrogen power reaches 2.1% and other energy sources are 1.3%.
In addition, South Korea has also enacted laws to promote the development of renewable energy. Such kinds of this energy include solar, wind, hydro, marine, geothermal, and biomass energy.
Currently, biomass energy accounts for less than 1.5% of South Korea’s total electricity production. Biomass power generation primarily involves thermal power plants that burn wood pellets to generate electricity. Although its share remains small, the capacity of pellet-based power generation has grown rapidly in recent years.
In 2022, the domestic wood pellet market was estimated at 4.5 million tons. However, domestic production only met 15.8% of the demand for wood pellets from power plants in South Korea.
South Korea currently has around 20 wood pellet production facilities. Most of which are small-scale operations with capacities under 10,000 tons per year. Only three large facilities exist, with a combined production capacity of approximately one million tons annually. Additionally, two big wood pellet plants using biomass from plantation forests are not yet operational. If they operate, the estimated capacity is more than 300,000 tons per year.
With policies aimed at expanding renewable energy sources, the biofuel market in South Korea continues to grow. In 2022, wood pellet imports reached 3.78 million tons, an increase of 600,000 tons compared to 2021.
Explaining South Korea’s reliance on wood pellet exports from Vietnam, Dr. Lee noted that South Korea’s total land area is 10 million hectares. In which, there are 6.3 million hectares of forest that produce 4.3 million tons of raw wood annually. In contrast, Vietnam has 14.8 million hectares of forest, with annual raw wood harvests ranging from 30 to 57.3 million cubic meters.
South Korea’s forests were heavily damaged during the Japanese colonial period. Large-scale reforestation and forest protection efforts in the 1980s increased forest biomass by 28 times. However, net wood growth has declined since 2008. Currently, South Korea’s annual wood harvest is only one-tenth of Vietnam’s production.
South Korea takes pride in being one of the countries with advanced biomass energy technology. However, it faces a severe shortage of wood materials for producing pellets. According to South Korean experts, the country’s renewable energy market, including wood pellets, is driven by government policies. In the 10th Power Plan for the period 2022–2036, the South Korean government has designated wood pellets to account for 57.64% of total bio-energy.
The demand for wood pellets in South Korea in 2023 is forecasted to reach 5 million tons. In which, domestic production will contribute 743,000 tons and imports will account for 4.17 million tons.
Currently, coal-fired power plants in South Korea generate nearly 40% of the national electricity output. However, these plants consume a total of 100 million tons of coal annually. The South Korean government plans to phase out coal-fired power generation by 2030.
The question that arises is how coal-fired power plants will need to transition. This is a very difficult problem for South Korea. Therefore, coal-fired power plants will need to change technology and convert equipment to start using wood pellets.
For instance, if all coal-fired power plants were to convert to pellet-based power generation, the demand would be enormous. Potentially, it would be several hundred million tons of wood pellets per year.
“However, I think it won’t be possible to fully replace coal-fired power plants with pellet-fired plants. Only a small portion (at most 10%) will be able to transition this way. The remaining plants will have to be shut down. We believe that the president’s commitment to carbon neutrality by 2050 will be difficult to achieve. Also, the plan to phase out coal-fired power plants by 2030 will also be challenging,” said Dr. Lee.
In the future, South Korea will increasingly need wood pellet exports from Vietnam. However, many people in South Korea are concerned that wood pellet suppliers in Vietnam, may lack sustainability. They worry that these suppliers might use more whole wood instead of by-products for production. This will lead to competition for raw materials with the furniture sector.
In response to concerns about the sustainability of pellet-based power generation, Dr. Lee proposed that Vietnam and South Korea cooperate to implement a series of solutions. One solution is to linking forest biomass policies with the promotion of sustainable forest resources. Another solution is to establishing governance systems including carbon neutrality. Finally, it will be strengthening systems for promoting legal timber trade.
“Vietnam is a major exporter of wood and wood products, and it needs a long-term strategy. South Korea will work with Vietnam to build a mutually beneficial partnership in forestry resources and technology. This partnership will bring more wood pellet exports from Vietnam to South Korea” Mr. Lee hopes.
Vietnamese source: https://vneconomy.vn/viet-nam-la-thi-truong-nhap-khau-vien-nen-go-quan-trong-cua-han-quoc.htm