About buying ethanol and using
If a mix of water and ethanol is boiled the condensed vapor will be 95% ethanol and 5% water. This concentration will prevail until all the ethanol has been vaporized from the water- ethanol mix. This mix is called "190 proof". (95% x 2 for some historical reason). Product for sale that is "190 proof" is likely a product of fermentation followed by distillation from the aqueous fermentation of some sugar source( or here in TN moonshiners
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This product can be dehydrated by further distillation to yield nearly pure ethanol, 200 proof, plus a minor amount of impurities. Alternatively ethanol can be made from ethane from natural gas wells to yield an exceptionally pure ethanol that is 99+% ethanol.
Any of these products can be rendered not easily drinkable by adding back chemicals that are hard to remove and either toxic or repulsive. This product has the added name "denatured" added to the ethanol. There are dozens of products labeled "denatured" that vary by what is added. The SDS will reveal what has been added. Then guess if the additive will affect the shellac.
If shellac is dissolved in 95% ethanol and applied to wood, the volatilizing ethanol will carry away the water with the vapor that will be 95/5 ethanol/water. Hence, it would not seem important whether one prepares shellac in 95 or 100% ethanol. I have never noticed a difference. (rapid evaporation can condense water on the wood, but that is a different story. )
There can be advantages to formulating finish in a solvent mix, such as a mix of alcohols. Upon application the lower boiling solvent flashes off quickly which increases the viscosity of what remains. Runs are minimized. The higher boiling solvent hangs around to keep the applied film low enough viscosity to level. Products like lacquer will have several solvents in the formulation to minimize runs and promote leveling. I take advantage of a mix of ethanol/methanol or ethanol/isopropanol depending on whether I am finishing when it is hot or cool. Zinsser shellac has a high boiling ketone that aids leveling, but results in slow drying.
Always be mindful that methanol and ethanol are sufficiently volatile that flammability needs to be considered.