ethanol, a biofuel derived from corn, is used in the production of both gasoline and pharmaceutical-grade hand sanitizer. during the pandemic, as the demand for gasoline plummeted, several producers of ethanol retrofitted their plants by purchasing new capital in order to produce a higher-quality ethanol, which could be used to make a medical-grade hand sanitizer. future decisions about whether to produce ethanol for gasoline or for hand sanitizer – be informed by the – costs they incurred to retrofit their plant.
James
Guys, does anyone know the answer?
get ethanol, a biofuel derived from corn, is used in the production of both gasoline and pharmaceutical-grade hand sanitizer. during the pandemic, as the demand for gasoline plummeted, several producers of ethanol retrofitted their plants by purchasing new capital in order to produce a higher-quality ethanol, which could be used to make a medical-grade hand sanitizer. future decisions about whether to produce ethanol for gasoline or for hand sanitizer – be informed by the – costs they incurred to retrofit their plant. from EN Bilgi.
Technical
Final recommendations on the use of technical-grade ethanol in alcohol-based hand sanitizers in Canada.
Technical-grade ethanol for the manufacture of hand sanitizers and hard-surface disinfectants during the COVID-19 pandemic: Risk assessment summary report
Published: May 12, 2020
Updated: January 18, 2022
Heath Canada introduced an interim measure that permits the use of certain authorized sources of technical-grade ethanol. We took this step to meet the urgent health need for hand sanitizers and disinfectants during the COVID-19 pandemic. We are discontinuing the interim measure as the supply of ethanol has stabilized and the demand for technical-grade ethanol has decreased. Suppliers and distributors are expected to stop producing, reselling and/or distributing technical-grade ethanol. Manufacturers are to return to using approved grades of ethanol for manufacturing after the authorized dates to produce, resell/distribute or sell.
On this page
Overview
Approvals related to technical-grade ethanol use in hand sanitizers
Scientific rationale and process for approvals
Original risk assessment (April 2020)
Updated risk assessment (June 2020)
Updated risk assessment (September 2020)
Use of technical-grade ethanol for hard-surface disinfectants
Implementation of technical-grade ethanol approvals
Overview
The unprecedented demand for hand sanitizer products during the COVID-19 pandemic has created global shortages of pharmaceutical and food-grade ethanol. Pharmaceutical and food-grade ethanol are also known as anhydrous alcohol, ethyl alcohol or grain alcohol. On April 15, 2020, Health Canada published a notice to industry about the time-limited approval of specific sources of technical-grade ethanol for use in the manufacture of hand sanitizers. This approval was originally scheduled to end on June 30, 2020. However, due to ongoing shortages of pharmaceurtical and food-grade ethanol, approval was extended until December 2021.
Other countries also experienced shortages of pharmaceutical and food-grade ethanol, and provide similar flexibilities to suppliers and manufacturers. Risk assessment approaches were established in the:
US for ethanol in hand sanitizers (March 2020, updated August 2020)
United Kingdom for isopropyl alcohol-based handrubs (May 2020)
This report provides a summary of the technical-grade ethanol risk assessment, including recommendations and risk mitigation measures.
Approvals related to technical-grade ethanol use in hand sanitizers
Data released by Statistics Canada showed that retail sales of hand sanitizer in 2020 continued to trend much higher compared to the same timeframe in 2019. In May and early June 2020, retail demand for hand sanitizer was on average 12 times higher compared to the weekly average in 2019. In August and September, it continued to be 6 times higher than in 2019.
This high demand resulted in shortages of raw materials, such as pharmaceutical or food-grade ethanol, which led to searches for substitute sources of ingredients.
In April 2020, Health Canada established a government task force to conduct a risk assessment of hand sanitizer containing specific sources of technical-grade ethanol. The task force determined that the public health benefits of using this hand sanitizer outweigh the risk when it is used:
as directed and
for a limited period
Based on the task force recommendations, Health Canada:
authorized ethanol suppliers to produce technical-grade ethanol for use in hand sanitizers until June 30, 2020, following a review of impurity data for each ethanol product
issued No Objection Letters (NOLs) to manufacturers of hand sanitizers, permitting the use of technical-grade ethanol until September 30, 2020
In June 2020, an updated risk assessment considered persistent supply chain shortages of pharmaceutical and food-grade ethanol, as well as lower impurity levels of technical-grade ethanol than those observed in April 2020. To further inform this work, Health Canada commissioned an independent supply and demand forecasting analysis. Results showed that in the absence of technical-grade ethanol, there would be an ethanol shortage of approximately 1 million litres per week.
The task force recommended:
extending the time-limited approval for suppliers of technical-grade ethanol from June 30 to October 31, 2020, inclusively
extending the time-limited approval for manufacturers of hand sanitizers using technical-grade ethanol from September 30 to December 31, 2020, inclusively
maintaining the existing warning statements with one minor modification
In September 2020, Health Canada observed ongoing dependence on imported pharmaceutical and food-grade ethanol to meet the demand for ethanol. The task force considered the risk of supply chain disruptions if exports of high-quality ethanol are restricted from countries facing their own surge in demand. Labelling requirements for products containing technical-grade ethanol were also re-evaluated.
The task force made the following recommendations:
extend the time-limited approval for suppliers of technical-grade ethanol from October 31, 2020, to March 31, 2021
extend the time-limited approval for manufacturers of hand sanitizers using technical-grade ethanol from December 31, 2020, to June 30, 2021
remove the additional warning statements for authorized products containing technical-grade ethanol that meet specified levels of impurities, including acetaldehyde levels of up to 75 ppm
Solved Chapter 9: Firms in a Competitive Market e Page 294
Answer to Solved Chapter 9: Firms in a Competitive Market e Page 294
© 2003-2022 Chegg Inc. All rights reserved.
World's largest ethanol producer forced to find a new market — hand sanitizer
POET, based in Sioux Falls, South Dakota, has re-engineered systems to make pharmaceutical grade hand sanitizer.
SKIP NAVIGATION ENERGY
World’s largest ethanol producer forced to find a new market — hand sanitizer
PUBLISHED THU, MAY 7 202011:54 AM EDTUPDATED THU, MAY 7 20204:11 PM EDT
Jane Wells @JANEWELLS WATCH LIVE WATCH NOW VIDEO02:13
Ethanol plummets, plants turn to hand sanitizer
Where gasoline goes, ethanol follows, and both have been on a path to unprofitability.
Ethanol prices have collapsed as gasoline demand dropped by half due to COVID-19 shutdowns. That because ethanol —a biofuel derived from corn — makes up about 10% of the gas in your tank.
So imagine you’re the guy right now who founded the world’s largest ethanol producing company. “We produce about two billion gallons of ethanol per year,” says Jeff Broin, founder and CEO of POET, based in Sioux Falls, South Dakota.
His company runs more than two dozen ethanol plants in the U.S., though currently three plants are closed, and 10% of his workforce is laid off.
“It’s down to about half capacity in a lot of plants,” he said.
However, in two plants, POET is doing something new. It has re-engineered systems to make pharmaceutical grade hand sanitizer.
“It takes some retrofitting,” says Broin. “That’s underway, literally working around the clock.”
The conversion from ethanol to hand sanitizer comes with “some pretty significant costs,” he says. The alcohol has to be further distilled to meet pharmaceutical grade standards, then it needs to be mixed with other ingredients to make hand sanitizer. “And then we take it to a bottling facility, which has not been something we’ve done in the past.”
The company is donating much of the hand sanitizer to front line healthcare workers near its headquarters, but it is also starting to sell some of the hand sanitizer online and in retail stores.
The new product helps offset losses in ethanol. Just as gasoline demand affects ethanol, ethanol production has had its own ripple effects. The government says 40% of the nation’s corn crop now goes into making the biofuel, and with less of it being produced, corn is even less profitable.
“Farmers were already oversupplied with grain, and this exacerbates issues on the farm,” Broin says.
Livestock producers often buy a high-protein feed which is a byproduct of the ethanol process. In a normal year, POET would produce and sell 10 billion pounds of that feed. Not this year. Beer and soda companies use the CO2 that is another byproduct, and so do meat packing plants which use carbon dioxide to flash freeze meat. Some are now concerned we may end up with a CO2 shortage.
However, gasoline demand is showing signs of a comeback, and ethanol futures are well off their lows from a month ago. Even so, Broin says POET is going to stay in the hand sanitizer business. He predicts it could eventually provide as much as 5% of income.
“I think the demand for hand sanitizer will increase over time,” he says. “People need to stay safe.”
Shark Tank WATCH IN THE APP
UP NEXT | Shark Tank 11:00 pm ET
TRENDING NOW
Will Smith apologizes to Chris Rock for slapping him at the Oscars
Bill Gates and Blackrock are backing the start-up behind hydropanels that make water out of thin air
Tesla CEO Elon Musk says he has Covid again
The bond market is flashing a warning sign a recession may be coming. Here’s why
Tesla wants to split its stock so it can pay a stock dividend; shares gain
MORE FROM CNBC
Will Smith apologizes to Chris Rock for slapping him at the Oscars
Jim Cramer says investors should use these rules to build a turbulence-proof portfolio
Bill Gates and Blackrock are backing the start-up behind hydropanels that make water out of thin air
I’m not buying KB Home stock until KB Home does, says Jim Cramer
Cramer’s lightning round: I like Nucor over ArcelorMittal
Stock futures are flat ahead of consumer confidence data
FROM THE WEB
The Secret Behind Babbel: An Expert Explains Why This App Is the Best for Learning a New Language
Babbel
Within The Next 20 Day You Could Start Speaking A New Language
Babbel
Uygunluğunuzu şimdi test edin - 100% Bedava
Usafis by Taboola
Guys, does anyone know the answer?