Some authorities have recommended producing methanol instead of traditional transportation fuels. It is a liquid at normal temperatures and can be toxic if ingested. Methanol has a higher octane rating than gasoline but a lower energy density, and can be mixed with other fuels or used on its own. It may also be used in the production of more complex hydrocarbons and polymers. Direct methanol fuel cells have been developed by Caltech's Jet Propulsion Laboratory to convert methanol and oxygen into electricity. It is possible to convert methanol into gasoline, jet fuel or other hydrocarbons, but that requires additional energy and more complex production facilities. Methanol is slightly more corrosive than traditional fuels, requiring automobile modifications on the order of US$100 each to use it.
In 2016, a method using carbon spikes, copper nanoparticles and nitrogen that converts carbon dioxide to ethanol was developed.