We analyzed the marginal fuel cost of unused forest biomass (domestic wood pellets) based on the SMP and REC outlook of the biomass power plants, A Power Generation Company and B Power Plant. We conducted a price comparison based on the REC weighting ...
We analyzed the marginal fuel cost of unused forest biomass (domestic wood pellets) based on the SMP and REC outlook of the biomass power plants, A Power Generation Company and B Power Plant. We conducted a price comparison based on the REC weighting changes to achieve economic feasibility compared to imported wood pellets and unused domestic forest biomass (domestic wood pellets) in view of the future price outlook. As a result, when the weighting of unused forest biomass is adjusted from the current 2.0 to 2.25, it is projected that in 2023, imported wood pellets will cost 320,000 KRW/ton, and domestic wood pellets will cost 314,000 KRW/ton. In 2024, imported wood pellets will cost 330,000 KRW/ton, and domestic wood pellets will cost 321,000 KRW/ton, showing that domestic wood pellets have an economic advantage over imported ones.
In recent years, global supply chain restructuring has occurred due to the Russia-Ukraine war and the US-China trade dispute, leading to increased resource security concerns. As a result, the prices of energy raw materials imported into the country have skyrocketed, causing a trade deficit. To address this, it is necessary to increase the self-sufficiency rate of wood pellets (currently 15.9% as of 2022) and secure economic feasibility by adjusting the weighting of unused forest biomass. Additionally, it is expected that the development of the forestry industry will occur through the continuous management and support of unused forest biomass from the perspective of recycling national forest resources, as well as timely policy support from the government.