By Haley Goddard, P.E
Several challenges have impacted the availability of chlorine products in the United States, including chlorine gas and bulk sodium hypochlorite (bleach), which are used to provide disinfection in water and wastewater treatment processes. In 2021, the country experienced a 10% decline in chlorine production capacity due to the closure of manufacturing facilities. Planned and unexpected events, such as maintenance activities, fires, power outages, and staff shortages, have further limited production. The price of chlorine products has been greatly affected by these production capacity issues, coupled with increased production and transportation costs, as well as inflationary pressures. Manufacturers pass on the increased costs to suppliers, who, in turn, pass them on to customers, including water and wastewater utilities (Status of Chlorine Product Availability and Pricing | US EPA)
The Producer Price Index (PPI) for chlorine products shows market fluctuations over the past 20 years, including a dramatic increase from 2020 to 2023. Although recent PPI data is starting to show a decline, the tight market for chlorine products with potential shortages and price shocks is likely to persist.
| For instance, the production of chlorine products relies on the chlor-alkali process, which traditionally uses asbestos membranes. While alternative materials for membranes exist, a significant portion of chlor-alkali plants still use asbestos membranes. The EPA has been tightening regulations, progressing towards a total ban on the use of asbestos (EPA Actions to Protect the Public from Exposure to Asbestos | US EPA). If implemented, this ban could impact approximately 30% of chlor-alkali production in the US, exacerbating supply shortages, increasing manufacturing costs, and driving up bleach prices once again. |
UPDATE: The EPA has officially announced a total ban on the use of asbestos.
https://www.epa.gov/newsreleases/biden-harris-administration-finalizes-ban-ongoing-uses-asbestos-protect-people-cancer
To combat the challenges of relying on the production and delivery bulk chlorine products, many utilities are exploring the option of onsite generation of sodium hypochlorite (OSHG) as a cost-effective and resilient alternative. Onsite generation systems like Microclor® OSHG offer an excellent return on investment. When the price of bulk chlorine products rises, the payback period for investing in this technology gets shorter. It’s time to get ahead of the economic trends and take control, gaining operational efficiency, improved safety, reduced costs, and a dependable supply of high-quality disinfectant.