NOVELTY - Method of utilizing carbon dioxide by separating and chemically recycling from natural/chemical sources, comprises: separating the carbon dioxide from available source and hydrogenatively converting the obtained carbon dioxide to produce methanol (I); utilizing methanol thus produced as an energy storage and transportation material or as fuel to generate energy while producing exhaustion stream of the combustion that contains carbon dioxide; and water recovering the carbon dioxide content of the combustion stream as chemically recyclable source of carbon dioxide based fuels and material.    USE - The method is useful to separate and recycle carbon dioxide. The method is useful to prepare methanol, dimethyl ether and derivative product, which is useful: as an energy storage and transportation material or as a fuel to generate fuel (all claimed), as a fuel in internal combustion engines, electricity generators or fuel cells for fuel cell vehicles; to produce derived fuels such as dimethyl ether, dimethyl carbonate ethylene, and propylene; in the manufacture of biodiesel fuels by esterification of fatty acids; as an aerosol propellant in spray cans; as a substitute for gasoline and diesel fuel in ICE-powered cars and fuel systems; in fuel cells, for fuel cell vehicles and substitute for LNG and LPG for heating homes and in industrial uses; as fuel in gas turbines to generate electric power; in chemical industry; useful to manufacture a large variety of chemical products and materials, e.g. formaldehyde, and acetic acid; useful as a source of single cell proteins.    ADVANTAGE - The method is environmentally beneficial. The method minimizes the dangers inherent in the use and transportation hydrogen, LNG or LPG (claimed). The method is efficient, and economical. The method provides formic acid and formaldehyde, thus produced, can be subsequently further substantially converted to methanol. The method provides high yield. The method reduces the initial requirement of carbon dioxide, thus significantly decreases the overall hydrogen requirement for methanol production. (I) is colorless, nontoxic, non-corrosive, non-carcinogenic and environmentally friendly. (I) has a relatively high theoretical volumetric energy density compared to other systems such as conventional batteries and the H2-PEM fuel cell, thus provides great importance for small portable applications such as cellular phones, laptop computers. (I) does not require any energy intensive procedures for pressurization or liquefaction. (I) is a liquid at room temperature, thus it can be easily handled, stored, distributed and carried in vehicles. (I) can act as an ideal hydrogen carrier for fuel cell vehicles through on-board methanol reformers, and can be used directly in direct methanol fuel cell (DMFC) vehicles. (I) is an effective fuel in diesel engines because of its high cetane number and favorable properties. (I) can burn at a lower temperature and has a higher vapor pressure compared to diesel fuel, and the higher volatility allows easy start even in cold weather, without producing white smoke. (I) eliminates air pollutants from vehicles in the long term. (I) is low cost. (I) is safe and convenient during storage.    DETAILED DESCRIPTION - Environmentally beneficial method of utilizing by separating and chemically recycling carbon dioxide from a natural or chemical sources, comprises: separating the carbon dioxide from an available source containing same and producing methanol by hydrogenatively converting the carbon dioxide thus obtained under conditions sufficient to produce methanol (I); utilizing the methanol thus produced as an energy storage and transportation material or as a fuel to generate energy while producing exhaustion stream of the combustion that contains carbon dioxide; and water recovering the carbon dioxide content of the combustion stream as chemically recyclable source of carbon dioxide based fuels and material.