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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.
With some redesigning, more methanol (up to 85%) can be used. The advantage for China is that the methanol can be produced from both coal and biomass via synthesis gas. This emphasis of using methanol as a fuel is reflected in the global production figures for methanol.anufacture of methanol. Methanol is manufactured from synthesis gas which is a mixture of carbon monoxide and hydrogen. The feedstock, over the last 40 or more years, has been oil or natural gas.