Methanol fuel is an alternative biofuel for internal combustion and other engines, either in combination with gasoline or independently. Methanol (CH3OH) is less expensive to sustainably produce than ethanol fuel, although it is more toxic than ethanol and has a lower energy density than gasoline. Methanol is safer for the environment than gasoline, is an anti-freeze agent, prevents dirt and grime buildup within the engine, has a higher ignition temperature and can withstand compression equivalent to that of super high-octane gasoline. It can readily be used in most modern engines. To prevent vapor lock due to being a simple, pure fuel, a small percentage of other fuel or certain additives can be included. Methanol may be made from fossil fuels or renewable resources, in particular natural gas and coal, or biomass respectively. In the case of the latter, it can be synthesized from CO2 (carbon dioxide) and hydrogen. The vast majority of methanol produced globally is currently made with gas and coal. However, projects, investments, and the production of green-methanol has risen steadily into 2023. Methanol fuel is currently used by racing cars in many countries and has seen increasing adoption by the maritime industry.
In 2022, the worldwide biomethanol market was around 120 million USD. Most of it is currently made from biomass. Companies investing significantly in biomethanol production and research include Enerkem, Södra, Methanex, Alberta Pacific, and BASF.
