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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.
Industrially, methanol is produced from synthesis gas, a mixture of carbon monoxide and hydrogen derived from coke (the coal, not the soda) or methane. Methanol is used as the fuel in some racing cars, and is being investigated as an renewable alternative to the use of petroleum-based fuels. The main use of methanol, however, is in the manufacture of other chemicals, such as formaldehyde, which is used in the manufacture of plastics, paints, plywood, etc.