Hydrogen Peroxide Supply Chain - Executive Summary Hydrogen Peroxide Direct Use Chemical precursor Chemical h2o2 (liquid) ^ Inputs to Manufacturing Process: Hydrogen Anthraquinone Derivative Water Treatment Chemicals: Sodium Chlorite % of Total Domestic Consumption Attributed to Water Sector: Approximately 10% fos Understanding Chemical Supply Chains Map of Suppliers & Manufacturers M Product Family Petroleum Byproducts CAS No.: 7722-84-1 2 Shelf Life: 12+ Months — RISK OF SUPPLY DISRUPTION (Assessed in 2022) RISK RATING: Low xe-Low Moderaf RISK DRIVERS Use of hydrogen peroxide in pulp and paper processing ac- counts for the majority of con- sumption of domestic produc- tion. Long-distance transport of hydrogen peroxide, a hazardous substance, may be limited. This can create logistical gaps be- tween production locations and point of use. RISK SCORE PARAMETERS Criticality: High. Essential for oxi- dation, dechlorination, and pro- duction of water treatment chemi- cals. Likelihood: Low. No history of sup- ply chain disruptions between 2000 and 2022. Vulnerability: Low. Distributed domestic manufacturing and supply. MANUFACTURING PROCESS Hydrogen Anthraquinone Hydrogen Peroxide Water T reatment Applications • Oxidation • Dechlorination • Water treatment chemical production Other Applications Input End Use • Pulp and paper processing • Chemical manufacturing • Textile bleaching • Medical uses (sterilization, decontamination) DOMESTIC PRODUCTION AND CONSUMPTION, AND INTERNATIONAL TRADE Domestic Manufacturing Locations (2015): 13, distributed throughout the U.S. (^) International Trade (2019) Primary Trading Partner (Imports): Canada Primary Trading Partner (Exports): Mexico Domestic Consumption (2019): 336 M kg Domestic Production (324 M kg) ¦ Imports for Consumption (103 M kg) I Export of Domestic Production (91 M kg) &EPA ------- Hydrogen Peroxide Supply Chain - Full Profile Product Description Hydrogen peroxide (H2O2), a highly soluble, inorganic oxidant is used as an oxidizing agent. It is a widely used oxidant and dechlorinating agent in water and wastewater treatment. The majority of hydrogen peroxide manufactured in the U.S. is used in paper and textile bleaching. Use in Water Treatment Hydrogen peroxide is used in water treatment as an oxidizing agent and for dechlorination. Use as a Precursor to Other Water Treatment Chemicals Hydrogen peroxide is used to manufacture sodium chlorite. Other Applications Hydrogen peroxide has a wide range of applications. The leading uses of hydrogen peroxide are pulp and paper processing, chemical manufacturing, textile bleaching, medical applications such as sterilization and decontamination, food processing, medicines and pharmaceuticals, a component of rocket fuel, and agricultural and livestock applications (FTC, 2019; NCBI, 2021). Primary Industrial Consumers Most domestically produced hydrogen peroxide is used for bleaching of paper products, deinking of recycled paper, and bleaching textiles. Collectively, these activities account for approximately 65% of domestic consumption. Approximately 10% of domestic consumption is used in water treatment (FTC, 2019; NCBI 2021). Manufacturing, Transport, & Storage Manufacturing Process The most common raw materials for the production of hydrogen peroxide are a source of hydrogen and anthraquinone, which is a polyacrylic aromatic hydrocarbon derived from coal tar or combustion of oil or gas. In the U.S., hydrogen peroxide is most commonly produced in an autoxidation process in proximity to a source of hydrogen, historically from coal, oil or natural gas. The process is energy intensive. The reactions for this process are shown in Figure 1. In this process, anthraquinone reacts with hydrogen in the presence of a catalyst to form anthrahydroquinone. The subsequent step removes the hydrogen from the anthrahydroquinone through oxidation with atmospheric oxygen to produce hydrogen peroxide, which is extracted with water. The crude hydrogen peroxide is diluted, filtered, and stabilized. Anthraquinone + Hydrogen —> Anthrahydroquinone Q + H2 -> h2q Anthrahydroquinone + Oxygen - -> Anthraquinone + Hydrogen Peroxide h2q + o2 -> Q + H2O2 Figure 1. Chemical Equation for the Reaction to Manufacture Hydrogen Peroxide EPA 817-F-22-030 | December 2022 SEPA ------- Hydrogen Peroxide Supply Chain - Full Profile Product Transport Hydrogen peroxide is considered a hazardous material when the solution concentration is greater than 8% by weight. While transport across the U.S. may be primarily by rail or truck, hydrogen peroxide can be transported in bulk or smaller containers by other means including barge or ship. Bulk quantity consumers may rely exclusively on regional production to avoid high transportation costs and risk of interruptions to supply (FTC, 2019; Solvay, 1998). Storage and Shelf Life Hydrogen peroxide is stable under recommended storage conditions, but degrades when exposed to direct sun and heat. When stored properly, hydrogen peroxide can have a shelf life greater than twelve months, though stability may depend upon many factors (Solvay, 2020). Domestic Production & Consumption Domestic Production Production data was collected from 2020 EPA Chemical Data Reporting (CDR), while trade data was collected from the U.S. International Trade Commission (USITC) Dataweb, as shown in Table 1. Both production and trade data are specific to hydrogen peroxide. Table 1. Hydrogen Peroxide Production and Trade Data Sources Production and Trade Data Category Data Source Identifier Description Domestic Production 2020 EPA Chemical Data Reporting CAS No.: 7722-84-1 Hydrogen Peroxide Imports and Exports U.S. International Trade Commission HS Code: 2847.00 Hydrogen Peroxide Total U.S. domestic production of hydrogen peroxide was approximately 324 million kilograms (M kg) in 2019 (EPA, 2020). The primary domestic manufactures include Evonik, MGC Pure Chemicals, and Solvay. Solvay indicates they are one of the largest worldwide hydrogen peroxide manufacturers (Solvay, 2022). The number of domestic manufacturing locations shown in Figure 2 represents operating facilities as of 2015 (EPA, 2016). Supply of NSF/ANSI Standard 60 certified hydrogen peroxide for use in drinking water treatment is widely distributed throughout the U.S. (NSF International, 2021). For a more current listing of manufacturing locations and supplier locations, visit the U.S. Environmental Protection Agency's (EPA's) Chemical Locator Tool (EPA, 2022a). 2 f/EPA ------- Hydrogen Peroxide Supply Chain - Full Profile I I O O = <5© ¦—-"HI o oo - - o ° o • o — J r:-^' Domestic Supply and Manufacturing of Hydrogen Peroxide O 48 NSF/ANSI Standard 60 Certified Suppliers (NSF International, 2020) 13 Domestic Manufacturing Locations (EPA Chemical Data Reporting, 2016) Figure 2. Domestic Supply and Manufacturing of Hydrogen Peroxide Domestic Consumption U.S. consumption of hydrogen peroxide in 2019 is estimated at 336 M kg. This estimate includes production of 324 M kg, import of 103 M kg, minus export of 91 M kg (EPA, 2020; USITC, 2021), as shown in Figure 3. Domestic Consumption (2019): 336 M kg ¦ Domestic Production (324 M kg) ¦ Imports for Consumption (103 M kg) ¦ Export of Domestic Production (91 M kg) Figure 3. Domestic Production and Consumption of Hydrogen Peroxide in 2019 Trade & Tariffs Worldwide Trade Worldwide import and export data for hydrogen peroxide are reported through the World Bank's World Integrated Trade Solutions (WITS) software, as a category specific to hydrogen peroxide. Export and import quantities were not reported to WITS for numerous countries including China, Japan, and India. In 2021, the U.S. 3 svEPA ------- Hydrogen Peroxide Supply ranked eighth worldwide in total exports and second in total imports of hydrogen peroxide. In ranked first worldwide in total exports and Italy ranked first worldwide in total imports (WITS, in Table 2. Table 2. WITS Worldwide Export and Import of Hydrogen Peroxide in 2021 2021 Worldwide Trade Hydrogen Peroxide (HS Code 2847.00) Top 5 Worldwide Exporters Top 5 Worldwide Importers Brazil 148 M kg Italy 97 M kg Belgium 144 M kg United States 90 M kg Thailand 144 M kg Netherlands 68 M kg Sweden 139 M kg France 59 M kg Germany 103 M kg Israel 56 M kg Domestic Imports and Exports Domestic imports and export data are reported by USITC in categories specific to hydrogen peroxide. Figure 4 summarizes imports for consumption1 and domestic exports2 of hydrogen peroxide between 2015 and 2020. During this period, the overall quantity of exports and imports remained relatively steady, with imports for consumption exceeding domestic exports in all years between 2015 and 2020 apart from 2018. Over this five- year period, Mexico was the primary recipient of domestic exports and Canada the primary source of imports (USITC, 2021). I. to i/> O O Q_ Q_ C X C LU 2020 Figure 4. USITC Domestic Import and Export of Hydrogen Peroxide between 2015 and 2020 1 Imports for consumption are a subset of general imports, representing the total amount cleared through customs and entering consumption channels, not anticipated to be reshipped to foreign points, but may include some reexports. 2 Domestic exports are a subset of total exports, representing export of domestic merchandise which are produced or manufactured in the U.S. and commodities of foreign origin which have been changed in the U.S. Chain - Full Profile 2021, Brazil 2022), as shown Domestic Trade of Hydrogen Peroxide 120 HTS Code 2847.00 100 80 60 ji? 40 ts> .2 20 2015 2016 2017 2018 2019 ¦ Imports from Canada ¦ Exports to Mexico ¦ Imports from Japan ¦ Exports to Canada I Imports from Other Countries Exports to Other Countries 4 f/EPA ------- Hydrogen Peroxide Supply Chain - Full Profile Tariffs There is a 3.7% general duty, and 25% additional duty on imports from China (USITC, 2022), as summarized in Table 3. Table 3. 2020 Domestic Tariff Schedule for Hydrogen Peroxide HS Code General Duty Additional Duty - China (Section 301 Tariff List) Special Duty 2847.00 3.7% 25% Free (A, AU, BH, CL, CO, D, E, IL, JO, KR, MA, OM, P, PA, PE, S, SG)3 Market History & Risk Evaluation History of Shortages There were no identified hydrogen peroxide supply chain disruptions between 2000 and 2022. Risk Evaluation The complete risk evaluation methodology is described in Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions (EPA, 2022b). The risk rating is calculated as the product of the following three risk parameters: Risk = Criticality x Likelihood x Vulnerability Criticality Measure of the importance of a chemical to the water sector Likelihood Measure of the probability that the chemical will experience a supply disruption in the future, which is estimated based on past occurrence of supply disruptions Vulnerability Measure of the market dynamics that make a chemical market more or less resilient to supply disruptions The individual parameter rating is based on evaluation of one or more attributes of the chemical or its supply chain. The ratings and drivers for these three risk parameters are shown below in Table 4. 3 Symbols used to designate the various preference programs and trade agreements. A full list of special trade agreements and associated acronyms can be found at https://help.cbp.eov/s/article/Article-310?laneuaee=en US and the General Notes Section of the Harmonized Tariff Schedule https://hts.usitc.eov/current 5 f/EPA ------- Hydrogen Peroxide Supply Chain - Full Profile Table 4. Supply Chain Risk Evaluation for Hydrogen Peroxide Risk Parameter Ratings and Drivers ICriticality High 1 1 Likelihood Low 1 (Vulnerability Low 1 Hydrogen peroxide has widespread application for as an oxidizing agent and as a dechlorinating agent. It is a precursor in the production of sodium chlorite. The water sector has not experienced hydrogen peroxide supply chain disruptions between 2000 and 2022. Strong domestic manufacturing capabilities and a distributed manufacturing base provide some resilience to supply disruptions. Risk Rating: Low £ ¦ e^e-Low Moderate 'e/> c\ % I 00 n> i References EPA, 2016. 2016 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data- reporting/access-cdr-data#2016 EPA, 2020. 2020 TSCA Chemical Data Reporting, retrieved from https://www.epa.gov/chemical-data- reporting/access-cdr-data#2020 EPA, 2022a. Chemical Suppliers and Manufacturers Locator Tool, retrieved from https://www.epa.gov/waterutilitvresponse/chemical-suppliers-and-manufacturers-locator-tool EPA, 2022b. Understanding Water Treatment Chemical Supply Chains and the Risk of Disruptions, retrieved from https://www.epa.gov/waterutilityresponse/risk-disruptions-supplv-water-treatment-chemicals NSF International, 2021. Search for NSF Certified Drinking Water Treatment Chemicals, retrieved from https://info.nsf.org/Certified/PwsChemicals/ National Center for Biotechnology Information (NCBI), 2021. PubChem Compound Summary for CID 784, Hydrogen Peroxide, retrieved from https://pubchem.ncbi.nlm.nih.gov/compound/Hvdrogen-peroxide Solvay, 1998. Hydrogen Peroxide Handling and Storage, Solvay S.A., retrieved from http://mae- nas.eng.usu.edu/Peroxide Web Page/documents/H202 Handling%20and%20Storage-191789.pdf Solvay, 2020. Interox® Hydrogen Peroxide Batch Numbering and Shelf Life Statement, retrieved from https://www.solvay.com/sites/g/files/srpend221/files/2020- 10/INTEROX%C2%AE%20Hvdrogen%20Peroxide%20%28H2Q2%29%20Shelf%20Life%20Statement EN.p df Solvay, 2022. 2021 Annual Integrated Report, retrieved from https://www.solvav.com/en/investors/annual- reports U.S. Federal Trade Commission (FTC), 2019. Administrative Part 3 Complaint In the Matter of Evonik/PeroxyChem, retrieved from https://www.ftc.gov/legal-library/browse/cases-proceedings/191- 0029-evonikperoxychem-matter 6 f/EPA ------- Hydrogen Peroxide Supply Chain - Full Profile U.S. International Trade Commission (USITC), 2021. USITC DataWeb, retrieved from https://dataweb.usitc.gov/ U.S. International Trade Commission (USITC), 2022. Harmonized Tariff Schedule (HTS) Search, retrieved from https://hts.usitc.gov/ World Integrated Trade Solutions (WITS), 2022. Trade Statistics by Product (HS 6-digit), retrieved from https://wits.worldbank.org/trade/countrv-bvhs6product.aspx?lang=en#void 7 f/EPA ------- |