Production, distribution and storage
Methanol is typically produced from natural gas or coal, but it can also be renewable methanol made from biomass. Methanol is sometimes called “wood alcohol”, because it was once produced as a byproduct of wood distillation. (Methanol Institute). Biomethanol is also produced from glycerine, which is a byproduct from production of Fatty Acid Methyl Esters (FAME) (BioMCN). In Iceland, renewable electro-fuel synthetic methanol is produced from geothermal CO2 and renewable hydrogen by Carbon Recycling International (CRI). Some small-scale production facilities for renewable methanol are operating or planned.
Even when produced from natural gas, methanol has a slight greenhouse gas (GHG) emission benefit over gasoline. For renewable methanol, GHG emissions are potentially relatively low In comparison with the default values of the European Renewable Energy Directive, RED II (2021 onwards). Overall, GHG reduction potentials of renewable methanol produced on an industrial scale can be competitive to established renewable fuels, if using suitable resources like waste wood and cultivated wood. (Schröder et al. 2020).
Methanol is one of the most common chemicals globally. Driven by Chinese demand growth, global methanol demand have increased from 61 to 125 million metric tons from 2012 to 2016 Production capacity of sustainable renewable methanol is only less than 1 million tonnes per year. (IHS global market study, Schröder et al. 2020).
Methanol prices are competitive with gasoline prices, even when considered on an energy equivalent basis (Bromberg and Cheng 2010). Renewable methanol is usually more expensive than fossil methanol similarly to other renewable fuels. When considering production of advanced renewable fuels, methanol is one of the most cost-efficient options. One possibility to reduce costs of methanol is to use a lower purity than 99.85% required for the chemical industry. Combustion engines operate even when purity of methanol is 90% and with high water content. (Schröder et al. 2020).
When considering methanol use as gasoline component, corrosion inhibitors, co-solvents, and alcohol compatible materials in vehicles are needed to resist phase separation, maintain stability and safety. In contrast to hydrocarbons, methanol is a polar molecule and thus corrosive to individual metals and alloys as well as elastomers and polymers that are widely used in engine fuel systems and fuel distribution chain designed for conventional hydrocarbon fuels.
Recommended materials for methanol depend on the purpose of use. Elastomers and polymers that are not recommended include fluorosilicone (FVMQ), fluororubber (FPM, FKM), hydrogenated nitrile butadiene rubber (HNBR), neoprene (CR), nitrile butadiene rubber (NBR), polyurethane (PUR) and polyvinyl chloride (PVC). Metals that are not compatible with methanol are aluminium, copper, titanium, zinc and some of their alloys depending on their purpose. Electrical conductivity of methanol increase risks for galvanic corrosion of some metals. (Schröder et al. 2020). According to Bromberg and Cheng (2010) methanol fuels can be aggressive towards magnesium, and if water is present, towards aluminum. Corrosion inhibitor additives and formulated engine oils reduce corrosive effects of methanol.
Neat methanol burns with an invisible flame, which is a safety risk aspect. Otherwise methanol may be considered even as a safer fuel than gasoline, harder to ignite, slower burning, and producing one-eighth the heat of gasoline.
Methanol, like all transportation fuels is toxic and should not be ingested. Methanol is readily biodegradable in both aerobic and anaerobic environments, and with a half-life in ground and surface water of one to six days. Further information for safe storage of methanol are documented in a Technical bulletin for methanol drums and the Methanol Safe Handling Manual of the Methanol Institute (MI 2016 and 2017).

