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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.
An international research team has discovered a potentially clean, low-cost way to convert carbon dioxide into methanol, a key ingredient in the production of plastics, adhesives and solvents, and a promising fuel for transportation.n a typical methanol plant, natural gas and water are converted to synthesis gas (syngas), which consists of carbon monoxide, carbon dioxide and hydrogen. The syngas is then converted into methanol in a high-pressure process using a catalyst made of copper, zinc and aluminum.