Ethanol is an essential raw material for many industries across South Africa. It’s a key solvent in the production of pharmaceuticals, cosmetics, fragrances, inks, coatings, and countless other industrial products. So when it comes to choosing the right type of ethanol, the smartest option for most non-beverage applications is a no-brainer: choose denatured ethanol.

Unlike undenatured ethanol which carries heavy excise and compliance burdens, denatured ethanol has been rendered unfit for drinking. This simple difference unlocks a host of benefits for South African companies. From SARS compliance to workplace safety, denatured ethanol is designed to keep costs low, processes smooth, and risks under control.

Here are a couple of reasons to choose denatured ethanol over undenatured:

Compliance with SARS is easier

SARS treats undenatured ethanol as a consumable product, meaning it’s taxed at the same excise rate as spirits used in alcoholic beverages. This means you’ll need a rebate license in order to procure this undenatured ethanol. This comes with an array of strict conditions such as bonded warehouses, SARS inspections, and detailed reporting.

Denatured ethanol avoids these headaches since it’s unfit for consumption as it’s not classed as potable because it has been rendered undrinkable through the addition of small amounts of denaturants. This means it’s not dutiable under the same SARS excise regime as undenatured ethanol. 

What does this means for businesses that use denatured ethanol in industrial or pharmaceutical processes:

• No need to pay excise duties
• No need for a bonded warehouse
• Eliminates the ongoing administrative burden of  maintaining a rebate licenses

No bonded storages required = Lower overheads 

Bonded warehouses can become very expensive to operate. The cost of managing a bonded warehouse can very quickly eat into margins when you have to consider things like additional security measures, SARS-approved recordkeeping, and tight stock control systems. 

Whereas with fully denatured ethanol, you don’t need a bonded warehouse as it’s non-dutiable.You can store it in your existing fire-approved production facilities. This flexibility translates directly into cost savings and makes ethanol procurement more accessible.

Lowers your risk of misuse or theft

Ethanol is valuable! It’s not just raw material. In its undenatured form, as a high-proof alcohol, it can be consumed. This introduces pilferage or unsafe use by staff, opening a can of worms when it comes to both security and liability risks.

Fully denatured ethanol removes this temptation by adding trace amounts of denaturants making it unsuitable for drinking. This discourages misuse, protects your employees, and safeguards your stock. For many businesses, this added security is a major benefit that reduces both risk and insurance concerns.

It has a purity that will match your application requirements

A common misconception is that denatured ethanol compromises on quality. While this may be true for some bulk blends that use heavy denaturants, it is not the case with carefully formulated options available in South Africa today.

At Enterprise Ethanol, our fully denatured (FD) blend is 99.8% pure ethanol, with only ±0.2% denaturants. This ensures it performs just as effectively as undenatured ethanol in industries where purity matters most. Here are a some of the industries that use our fully denatured ethanol:

• Medical and Pharma:  for solvents and API processes as well as disinfection
• Cosmetic: for hair sprays, perfumes, and sanitizers
• Perfumery: used as a stable carrier that meets IFRA standards
• Industrial uses: for inks, coatings, and cleaning solutions

With minimal denaturant content, manufacturers get the best of both worlds: purity and compliance. And because it’s safe, compliant, and cost-effective, denatured ethanol is the go-to choice for many procurement managers we work with who want reliability without compromise.

Buying local has its advantages

In addition to choosing denatured ethanol, sourcing it from a local, reputable supplier like Enterprise Ethanol offers you further advantages. Some of these include no stop-start in production because you’ll get faster lead times compared to imports and no risk of port congestion or customs delays. Our fully-denatured ethanol is already compliant with SARS denaturing rules so you don’t need to worry about compliance and you’ll get support from a local partner who understands excise regulations.

If your business doesn’t need ethanol for beverage production, fully denatured ethanol is almost always the smarter choice in South Africa.

Enterprise Ethanol’s its designed specifically for South African businesses seeking purity and compliance. At 99.8% ethanol, it delivers performance equivalent to undenatured ethanol, without the cost, licensing, and risk burden.

Get in touch with us to find out more about how we can help support your production needs in South Africa.