Flammable Liquid Storage Explained
Flammable liquids are part of daily operations in breweries, distilleries and wineries.
From ethanol and high-proof spirits to cleaning solvents and fuels, these substances introduce a real fire and explosion risk if they are not handled and stored correctly.
In Australia, the benchmark for managing this risk is AS 1940 – The Storage and Handling of Flammable and Combustible Liquids.
While AS 1940 is often viewed as a compliance requirement, its real value goes further. It directly impacts how safely you operate, how insurers assess your risk, and how a claim is handled if something goes wrong.
What is AS 1940?
AS 1940 is the Australian Standard that governs the safe storage and handling of flammable and combustible liquids, including ethanol and high-proof alcohol used in breweries, distilleries and wineries.
It sets expectations around:
- storage methods
- separation from ignition sources
- ventilation
- spill containment
- fire protection and emergency planning
For alcohol producers, it is not optional in practice. It is the baseline that regulators and insurers expect.
What flammable liquids exist in your operation?
Most producers are handling more flammable materials than they realise.
This typically includes:
- ethanol and neutral spirits
- potable spirits above 24% ABV
- fortified wine products
- cleaning solvents and chemicals
- fuels used in production or material handling
Each of these contributes to your overall risk profile.
How insurers assess flammable liquid risk
From an insurance perspective, AS 1940 is not just guidance. It is a benchmark.
Insurers use it to assess:
- fire and explosion risk
- maximum foreseeable loss
- acceptability of storage arrangements
- how a claim may be treated
This is where many businesses get caught out.
Two sites can look similar on the surface, but small differences in storage, layout or controls can lead to very different outcomes when it comes to cover, pricing and claims.
How much flammable liquid can you store?
This is one of the most common questions we hear.
“How many litres can I store in this space?”
The reality is, AS 1940 does not work on a litres-per-square-metre basis.
There is no simple formula.
Instead, risk is assessed based on:
- total quantity stored
- how it is stored (packages vs tanks)
- where it is stored (indoors vs outdoors)
- separation from ignition sources
- ventilation
- spill containment
- building construction and fire separation
This is why two breweries with the same footprint can have completely different risk profiles.
The common issue we see as businesses grow
Growth is where risk quietly builds.
Production increases.
Storage expands.
Spaces get repurposed.
But controls do not always keep pace.
What starts as a well-managed setup gradually becomes:
- overflow storage
- mixed-use areas
- reduced separation between hazards
This is where most preventable incidents occur.
Five practical ways to reduce flammable risk
Good flammable management does not need to be complex. These principles make a material difference.
1. Store flammables intentionally
Designate specific storage areas and treat them as controlled environments, not overflow space.
2. Separate from ignition sources
Boilers, stills, forklifts, battery charging and hot works should not share space with flammable storage.
3. Plan for peak volumes
Insurers assess the maximum amount that could be on site, not your average day.
4. Contain spills early
Ensure floors, bunding and drainage prevent liquids spreading into drains, exits or adjacent areas.
5. Document what you do
Clear procedures and site plans demonstrate competence and make a significant difference at claim time.
A practical flammable liquids checklist
Use this as a sense-check of your current setup.
1. Know what you are storing
- We know exactly which flammable liquids are on site
- We understand peak volumes, not just averages
- Storage locations are consistent and deliberate
2. Separate flammables from ignition
- Storage is separated from boilers, stills and hot works
- Forklift charging and electrical panels are not in storage areas
- Temporary activities do not encroach into these zones
3. Control spills before they spread
- Floors prevent flow into drains or exits
- Bunding exists where volumes justify it
- Spill kits are available and used
4. Ventilation and layout are fit for purpose
- Storage areas are adequately ventilated
- Containers are stable and protected
- Access routes are clear
5. Visibility and signage are appropriate
- Storage areas are clearly signed
- Emergency services could identify hazards quickly
- Contractors understand the risks
6. Procedures are practical and followed
- Responsibility is clearly assigned
- Decanting is controlled and ventilated
- Changes trigger a review
7. Growth has not outpaced controls
- Storage has been reviewed as the business has grown
- Seasonal peaks are considered
- Insurance values reflect current operations
When should you review your setup?
You should review your flammable storage whenever:
- production increases
- new equipment is introduced
- layouts change
- stock levels grow
- your insurance renews
If your business has changed, your risk has changed.
FAQs about flammable liquid storage
Does AS 1940 apply to breweries and distilleries?
Yes. Any business storing or handling flammable liquids, including ethanol and high-proof alcohol, falls within its scope.
Is there a legal limit to how much ethanol I can store?
There is no simple universal limit. Requirements depend on storage method, location, separation and controls in place.
Do insurers require AS 1940 compliance?
In practice, yes. It is the baseline used to assess risk, pricing and claims outcomes.
What is the biggest mistake businesses make?
Allowing storage volumes and layouts to change without reviewing how risk is being managed.
A final Crafted perspective
Good flammable management is not about paperwork or perfection.
It is about respecting the process, the product and the people working with it.
The businesses that get this right tend to experience:
- fewer incidents
- smoother insurance renewals
- greater confidence to grow
Not sure where you stand?
If your storage has evolved over time, there may be gaps you are not aware of.
We offer a free risk audit for breweries and distilleries.
We will help you understand how your current setup would be viewed by insurers and where simple changes can reduce your exposure.
So you can focus on the important stuff. Making great product.