Quote:

"Natural gas is the feedstock used in most of the world's production of methanol and typically represents the most significant cost component."

Source: Methanex Corporation World Leader in Methanol Production

Methanol can also be produced as an effluent of coal fired powerplants. Methanol is DEFINITELY a fossil fuel since it is derived in large quantities from fossil fuels.

The Japanese have invented a fuel cell that uses Ethanol instead, which is not a fossil fuel, as it is made by fermenting grains, sugars and starchy agricultural products, and distilling the resulting liquid to achieve at least 180 proof (90% pure) alcohol. Sometimes it is purified further and mixed with 15% gasoline to denature it (render it unfit for consumption) at which point you have a fuel formula known as E85 (85% alcohol, 15% gasoline) which can be used by numerous Flexible Fueled Vehicles sold by automakers. For example the Chevy S10 and the GM Sonoma can burn alcohol, gasoline, or any combination of the two. You don't have to denature the alcohol if you intend to use it in your own vehicle, so you can use the cheaper 180 proof homebrew (90% alcohol, 10% water). You only have to denature it if you want to sell it or transport it in bulk over state lines. If you don't denature it then you have to pay a $22 per liter tax as imposed by the Federal Bureau of Alcohol, Tabacco & Firearms.