Methanol has some real advantages as a biofuel, and a few major drawbacks. A new process is able to convert carbon dioxide into the promising energy source.

Researchers from Stanford University and the Technical University in Denmark have developed a new nickel-gallium catalyst, that could drive a new generation of fuels. Methanol cannot currently be used as a gasoline additive, but holds great promise for the future as a biofuel.

In addition, methanol is a primary ingredient in plastics, solvents and adhesives. A less costly way of generating these substances could have repercussions across each of those industries.

Currently, methanol is produced from natural gas and water, which are formed into a synthesis gas (syngas), made up of Carbon dioxide, carbon monoxide and hydrogen.

The new catalyst is able to convert CO2 and hydrogen gas into methanol, with the production of far fewer by-products than current methods. Catalysts are traditionally made from copper, aluminum and zinc, in order to convert the syngas into methanol.

Researchers carefully studied the old-fashioned catalyst to identify the sites at which reactions took place. Then, they consulted with an online database of materials to identify a suitable new substance for the catalyst.

Current methods of production require high pressure gases, adding to the cost of production.

"The use of methanol as a fuel and chemical feedstock could become very important in the development of a more sustainable society if methanol could be efficiently obtained from the direct reduction of CO2 using solar-generated hydrogen. If hydrogen production is to be decentralized, small-scale CO2 reduction devices are required that operate at low pressures,' the researchers wrote in the article announcing the results of their study.

Even if methanol is not suitable for use as a gasoline additive today, a similar process may allow production of other fuels.

"Imagine if you could synthesize methanol using hydrogen from renewable sources, such as water split by sunlight, and carbon dioxide captured from power plants and other industrial smokestacks. Eventually we would also like to make higher alcohols, such as ethanol and propanol, which, unlike methanol, can be directly added to gasoline today," Jens Nørskov, a professor of chemical engineering at Stanford, said.

Details of the new methanol catalyst were published in the journal Nature Chemistry on 2 March.