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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.
Methanol (CH 3 OH), also known as wood alcohol, is considered an alternative fuel under the Energy Policy Act of 1992. As an engine fuel, methanol has chemical and physical fuel properties similar to ethanol.his fuel is generally produced by steam-reforming natural gas to create a synthesis gas. Feeding this synthesis gas into a reactor with a catalyst produces methanol and water vapor. Various feedstocks can produce methanol, but natural gas is currently the most economical.