Several factors affect the use and selection of any fuel. Among the important ones are engine design, net energy per pound, net energy per gallon, and the sulphur content of alternative fuel properties. Measuring a fuel's relative potential energy can easily be done by defining that fuel's Btu content. Methanol requires few if any engine modifications to extract the maximum power from this fuel. As compared to gasoline, methanol lowers some tailpipe emissions, namely the sulphur based HC, CO, as well as NO x .
Methanol contains only half the energy per gallon of gasoline but has a very high octane rating.
Increased compression ratios could yield 5 to 20 percent more power. Methanol can be produced from natural gas or from wood fiber. Production of methanol from coal and biomass, while possible in the laboratory, has not been economically demonstrated in a mass production process. When methanol is used as a gasoline additive, antiknock compound and fuel extender, it becomes economical with very positive results, especially from the emissions standpoint. It contains zero sulfur, thereby reducing tailpipe acids significantly.