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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.
Properties of Methanol. Methanol, also known as methyl alcohol, wood alcohol, wood naphtha or wood spirits, is a chemical with formula CH 3 OH (often abbreviated MeOH).t forms explosive mixtures with air and burns with a non-luminous flame. Methanol is also a toxin and should not be ingested â drinking quantities of methanol can result in blindness and severe damage to the central nervous system. For more information on methanol and health, please visit our Health & Safety section.