NOVELTY - Environmentally beneficial method of producing methanol by reductive conversion of carbon dioxide, comprises: reducing carbon dioxide to produce a reaction mixture containing formic acid with concomitant formation of formaldehyde and small amounts of methanol and methane, followed, without separation of the reaction mixture, by treating to convert the formaldehyde to formic acid and methanol.    USE - The process is useful to obtain higher olefins, synthetic hydrocarbons or aromatics and their products, for use as feedstocks for chemicals or as transportation fuels. The dimethyl ether obtained from the process is used as a substitute for natural gas and liquefied petroleum gas (LPG) for heating purposes for households or industrial use. The process is useful: for preparing an improved diesel fuel by mixing sufficient amounts of dimethyl ether with conventional diesel fuel; for utilizing methanol or dimethyl ether as convenient energy storage and transportation materials to minimize or eliminate the disadvantages or dangers inherent in the use and transportation of liquefied natural gas or LPG; and for utilizing the methanol for preparing single cell proteins for human or animal alimentation (all claimed).    ADVANTAGE - The method is environmentally beneficial (claimed).    DETAILED DESCRIPTION - Environmentally beneficial method of producing methanol by reductive conversion of carbon dioxide, comprises: reducing carbon dioxide to produce a reaction mixture containing formic acid with concomitant formation of formaldehyde and small amounts of methanol and methane, followed, without separation of the reaction mixture, by treating to convert the formaldehyde to formic acid and methanol; or augmenting the reaction mixture by reacting the formaldehyde with some of the formic acid as a hydrogen source, without separation of the reaction mixture, into methanol, and by reacting some of the formic acid with methanol to form methyl formate, followed by catalytically hydrogenating the methyl formate to form methanol; or generating carbon monoxide from the carbon dioxide through a high temperature reaction with carbon, reacting the carbon monoxide with the produced methanol under to form methyl formate, followed by catalytic hydrogenation of the methyl formate to form methanol.