TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The methane source is natural gas, coal gas, or methane hydrates. The oxidizing agent is molecular oxygen or air and a suitable catalyst. The oxidizing agent comprises hydrogen peroxide and an oxide catalyst. The oxide catalyst includes single or mixed catalysts based on vanadium (V), titanium (Ti), gallium (Ga), magnesium (Mg), copper (Cu), molybdenum (Mo), bismuth (Bi), iron (Fe), manganese (Mn), cobalt (Co), niobium (Nb), zirconium (Zr), lanthanum (La) or tin (Sn) and are optionally provided on a silica or alumina support.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Method: The methanol oxidation mixture is treated without separation of its components to convert all the formaldehyde present in it to methyl alcohol without any by-products. The formaldehyde is converted via solid base catalysis into methanol and formic acid, which are then subsequently converted to form methyl formate. The method further involves: reacting formic acid with the formaldehyde to produce methanol; subjecting the formaldehyde to catalytic dimerization to form methyl formate; dehydrating methanol to produce dimethyl ether; heating dimethyl ether in the presence of acidic-basic or zeolitic catalysts to form ethylene or propylene; converting ethylene or propylene either to higher olefins, synthetic hydrocarbons or aromatics and their products for use as feedstocks for chemicals or as transportation fuels; hydrating ethylene or propylene to form ethanol or propanol; preparing an improved diesel fuel by mixing dimethyl ether with conventional diesel fuel; forming dimethyl carbonate by reaction of the methanol with phosgene or by oxidative carbonylation of the methanol; preparing improved diesel fuel by mixing dimethyl carbonate with conventional diesel fuel; and preparing transportation fuel by adding methanol to gasoline. The methane source is oxidized by, contact with an oxidizing agent to form methanol and formaldehyde. The unreacted methane is, recovered and recycled to the oxidizing step. The methyl formate is converted to methanol by catalytic hydrogenation or by electrochemical reduction. EXAMPLE - A gaseous mixture of methane (20 mol%), oxygen (10 mol%) diluted with nitrogen, was passed over preheated silicon dioxide at 650degreesC in a quartz tube continuous flow reactor to obtain formaldehyde (17%). Then the gaseous formaldehyde was reacted over zirconium oxide catalyst at 150degreesC to obtain methyl formate in 99% selectivity with 85% conversion. The methyl formate was catalytically reduced with molecular hydrogen in the gas phase over copper chromite catalysts at atmospheric pressure at a temperature of 100-230degreesC. Selectivity to methanol was greater than 90% and methyl formate conversion was (85-90%).