Methanol is a key product in the chemical industry and an emerging energy fuel, currently mainly produced from fossil sources. Biomethanol, that is renewable methanol produced from biomass, could play an important role in emission reduction for the transport sector. Using biomethanol results in quite high reduction of greenhouse gas emissions and the physical properties of methanol support a clean and efficient combustion. This report is a brief overview of different aspects of biomethanol production and its use as a fuel with focus on the EU.