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However, unlike ethanol, methanol is highly toxic and unfit for consumption. At room temperature, it is a polar liquid, and is used as an antifreeze, solvent, fuel, and as a denaturant for ethanol. It is also used for producing biodiesel via transesterification reaction.ecause of these toxic properties, methanol is frequently used as a denaturant additive for ethanol manufactured for industrial uses. This addition of methanol exempts industrial ethanol (commonly known as  denatured alcohol  or methylated spirit) from liquor excise taxation in the US and some other countries.
Commonly known as wood alcohol, methanol was originally produced by the distillation of wood feedstock. Technological breakthroughs in the 1920s, and again in the 1970s, changed the process of methanol production, which today primarily requires natural gas feedstock. Natural gas is processed through several steps, including the use of catalysts, pressure and high heat, until it eventually emerges as liquid methanol. (See References 3) As of 2011, natural gas is the cheapest methanol precursor, but other high-carbon feedstocks such as coal can be employed to create liquid methanol.