Today, methanol is produced on an industrial scale primarily through the catalytic conversion of syngas derived almost exclusively from natural gas or coal. However, from a synthesis technology perspective, it is also possible to produce methanol from biomass-based or power-based syngas. The synthesis can take place either directly from CO₂ and H₂ or (as in today’s fossil-based plants) from CO and H₂. The process operates with copper and zinc-containing catalyst systems at reactor temperatures between 200 and 300°C and pressures predominantly in the range of 30 to 100 bar. The synthesis from CO₂ and H₂, which is advantageous in power-based processes as no additional CO₂ reduction is required, is mildly exothermic (i.e., heat is released during the reaction) and highly selective (i.e., almost exclusively methanol and water as a byproduct are produced).

In the transport sector, methanol can be used either as a pure fuel (e.g., in fuel cells or combustion engines) or as a blending component (up to 3% in gasoline). However, at higher blending ratios, methanol's corrosive properties and its blending and combustion characteristics pose challenges, requiring adjustments to the existing infrastructure (i.e., fuel storage, pipelines, filling stations, and vehicles). Furthermore, methanol is already used today for biodiesel production. Methanol can also serve as a feedstock for the production of gasoline, kerosene, or diesel (via Methanol-to-Hydrocarbon processes) (Kaltschmitt 2024).