We report a new very low temperature methanol catalyst system that is produced in situ by the reaction of Cu(CH3COO)(2), NaH, and methanol. The catalytic reaction is assumed to proceed in two steps: (i) formation of methyl formate from syngas and (ii) hydrogenation of methyl formate to two molecules of methanol. When the catalyst system is tested in a batch reactor, syngas conversion of 50-75% is achieved at a temperature of 60-120 degrees C and a pressure of 10-20 bar. Syngas generation is a major cost factor in current commercial methanol technology. Very high conversion per pass (low reaction temperature) in the methanol reactor would allow for the use of air for syngas generation (autothermal reforming or partial oxidation reaction) and thereby contribute to potential cost reduction.