Ethanol is a versatile substance. It is easily mixable with water and a wide range of other liquids and has excellent solvent properties with respect to many substances.

In comparison with other common solvents, ethanol proves to be a particularly advantageous substance. The special nature of ethanol is explained below through a comparison of some of its properties with those of other solvents frequently used in chemistry.

With regard to the so-called MAC (maximum allowable concentration) values, ethanol is an extremely advantageous substance: the limits of isopropanol, methanol and methyl ethyl ketone (MEK) are two and a half times lower—and those of toluene ten times lower—than those of ethanol.

In contrast to other solvents, in average concentration, ethanol generally presents no risk to water. The natural substance is easily biodegradable, which is only partly true of isopropanol, methanol and methyl ethyl ketone.
Toluene and other solvents must not be allowed to contaminate the ground or water systems.

During biodegradation and combustion of ethanol, only carbon dioxide (CO2) and water—two natural substances—are left over. With regard to the formation of CO2, ethanol of agricultural origin can even be designated as neutral: the quantity of gas produced during biodegradation or combustion will have been absorbed to a large extent during the growth of the original plant.

In terms of the potential to form ozone at ground level, ethanol, as a volatile organic compound (VOC), is again better than methyl ethyl ketone or toluene.

The use of ethanol is widespread in the cosmetics and pharmaceutical industries. The substance is increasingly used as a substitute for isopropanol as well as for other fossil, non-renewable solvents from the petrochemical industry.

Approximately 80 billion litres of ethanol are produced worldwide every year. Ethanol is produced in around 75 countries worldwide, with the US and Brazil accounting for as much as approximately 90% of the entire production. Ethanol production offers developing and emerging economies in particular a chance to diversify their range of exports and is responsible for the creation of many jobs in the countries concerned.

Ethanol is often obtained as a by-product of the waste materials and residues from the processing of sugar cane, sugar beet and their molasses as well as starch from corn and cereals.

Only around ten per cent of the ethanol produced worldwide reaches the international trade market; the rest is used directly by the manufacturing countries. The amount of ethanol produced worldwide is subject to considerable fluctuation depending on international demand and crop yields.

The international ethanol market is not structured, and it knows neither any standard qualities nor any commodity markets. This situation offers opportunities for entrepreneurial and unbureaucratic activities. Alcosuisse has many years' experience in the ethanol business and therefore has extensive knowledge of purchasing on the international market. Through its long-standing relationships—carefully nurtured over the years—with various producers and traders, as well as through its own targeted market observation, Alcosuisse is constantly abreast of the current situation and the changes to be expected in the ethanol market.

Alcosuisse meets its entire demand through imports. Its main suppliers are Brazil and Pakistan, followed by various EU countries. Ethanol destined for Switzerland is carried by ship to a North Sea port, from whence it is carried by railway tank wagon to Alcosuisse’s distribution centres in Delémont and Schachen.

In the late 1990’s, the Swiss Alcohol Board (SAB) introduced measures aimed at loosening trade restrictions on ethanol. The Alcosuisse profit centre was set up in 1998, establishing the framework for providing Swiss customers with products and services at fair market prices and conditions.

The market separation between taxed ethanol for potable purposes and for foodstuffs and untaxed ethanol for industrial purposes is ensured through denaturation. Denaturation means that ethanol is altered and made unfit for consumption by means of an admixture of additives which deteriorate its flavour and/or aroma.

To prevent the consumption of untaxed ethanol, its production, import and use are monitored by the SAB.