NOVELTY - Rendering coal as an essentially environmentally carbon dioxide-neutral fuel and regenerative carbon source comprises: subjecting coal to reaction conditions sufficient to produce carbon dioxide; capturing and purifying the produced carbon dioxide; and combining the purified carbon dioxide with water and suitable hydrocarbon source or with hydrogen under reaction conditions sufficient to produce methanol or dimethyl ether, so that the carbon dioxide generated from coal is not introduced into the atmosphere, thus rendering the coal as an essentially environmentally carbon dioxide-neutral fuel.    USE - The method is useful for rendering coal as an essentially environmentally carbon dioxide-neutral fuel and regenerative carbon source to produce methanol and/or dimethyl ether (claimed), which are useful: as feedstock for derived synthetic hydrocarbons and products; as synthetic internal combustion fuels, gasoline-methanol mixed fuels, diesel fuels or fuels for fuel cells; and for making e.g. formaldehyde, acetic acid, methyl-tert-butyl ether, ethylene and propylene (which in turn can be used to form ethanol and propanol, higher olefins, polyolefins, synthetic hydrocarbons and aromatic compounds) and chemicals, which include chloromethane, methylamine, methyl methacrylate and dimethyl terephthalate (which can be further processed to manufacture paints, resins, silicones, adhesives, antifreeze, plastics or construction materials).    ADVANTAGE - The method permanently and economically avoids or mitigates the release of carbon dioxide into the environment and is environmentally beneficial. The method provides improved control, high selectivity and high yield of the conversion of carbon dioxide to methanol, without producing any byproducts and the disadvantages associated with concurrent partial oxidation that results in undesirable excess carbon dioxide. The methanol and di-methyl ether are convenient energy storage and transportation materials that minimize or eliminate the disadvantages and dangers inherent in the use and transportation of liquefied natural gas or liquefied petroleum gas.