Nowadays, cannabis production has increased exponentially in many parts of the world. In order to get these substances, a company has to go through several complex procedures that would allow them to extract hemp oil from the plant. The most crucial one is solvent extraction.
You can use various substances for extraction. For example, the CO2 extraction method is very good but also very expensive. There is also an option of using butane. However, most businesses rely on pure ethanol. According to Simple Solvents company, the demand for this substance has increased by few times in just last year or so.
If your cannabis business also relies on this chemical, you need to know a few things. Among others, there are a few important rules as to how to buy pure ethanol. In this article, we will go through ethanol regulation, licensing, and everything else that needs to be prior to purchasing.
What kind of ethanol can you buy on the market?
Ethanol or 100% alcohol is a colorless substance that is categorized as a food-grade chemical. It is very volatile, and you need to handle it with care. Most noticeably, it can cause a fire, so you need to store it someplace where there is good ventilation as well as fire extinguishers.
You can make this chemical by using fermented wheat, potatoes, corn, and numerous other starches. Besides pure ethanol, there are some other kinds of alcohol that you can use for extraction. However, we recommend this type over any other.
Here are the two main types of the substance:
*200 alcohol proof ethanol and 190 alcohol proof ethanol
While these are two different substances, we will put them in the same category for the purpose of this article. The difference between these two is in their water content. The first product will barely have any water in it. On the other hand, the second one will have about 5 percent of this liquid.
Depending on the water content, we can determine how strong a chemical is. Needless to say, if it has less water, it will be stronger. That being said, 200 proof is the most potent of all alcohols and the perfect extraction substance. There is also an option of reproofing the substance with distillation equipment as a way of prolonging its potential use.
Although 200 proof ethanol food grade is awesome, it is also very expensive. Due to the fact that this chemical is categorized as food-grade, it is something that can be used for the creation of drinking alcohols. As a result, the taxes on the product are much higher than for some other types of alcohol.
The second type of ethanol on this list is denatured alcohol. The chemical got its name because it was de-natured, that is, its natural composition was artificially altered.
Companies create denatured alcohol as a way of avoiding high taxes that come with the regular stuff. They add various chemicals to regular ethanol creating this substance. For example, they will change its color, smell, and taste, all in order to deter people from drinking it. Denatured alcohol is very toxic and shouldn’t be used by humans.
Unlike 200 proof alcohol, it is much easier to sell and store denatured alcohol. Anyone can buy the substance and use it without having to report to the government.
How is ethanol regulated?
Every country has its own set of rules for this product. In this article, we will take a look at how Canada and the US deal with the chemical.
The Canadian government requires that all alcohol sellers have appropriate licenses when dealing with 200 proof ethanol. This is a part of the Canadian Excise Act. It doesn’t get better for the users as they also need a user license to purchase and utilize the chemical.
Every company is strictly monitored. They need to have a license that lasts up to 2 years. If they do not, they will have to pay an excise tax for all the alcohol they have in inventory.
Similar rules apply to American companies. They need to apply at the Alcohol and Tobacco Tax and Trade Bureau. This goes for all alcohols, not only pure ethanol. Depending on a product that is being sold, a company may be exempt from paying the tax.
If alcohol was used for research or medicinal purposes, you can apply for a permit that would remove the tax. All alcohol products should be properly stored to avoid potential hazards or misuse.
Author’s bio: Cannabis marketing agency CBDAdvertising.agency is one of the leading digital marketing companies in the United States and Canada. They have 13 years of SEO and marketing experience.