In recognition of the environmental benefits of the use of methanol as an alternative transportation fuel, the U.S. Environmental Protection Agency's Office of Mobile Sources conducts on-going research on the use of methanol in transportation applications. In support of EPA's efforts, Jack Faucett Associates, Inc. prepared the report to provide an analytical tool for policy makers concerned with methanol as a transportation fuel. In order to assist policy makers in consideration of methanol as a dominant U.S. transportation fuel, the report includes: information on the global capacity available to produce methanol, estimates of the costs of production from existing capacity, estimates of the costs of production from capacity that may be added as demand increases and estimates of the delivered prices of methanol to selected U.S. Ports during the period of transition, beginning with current market conditions (characterized by excess capacity and regionalized demand) and continuing to the point where worldwide demand exceeds available capacity. The estimates developed in the report are based on secondary sources that provide data on current methanol production costs and engineering estimates of future costs, as available.