Methods for producing alcohols by deriving carbon dioxide from air or another dilute source, and supplying water, which is converted to hydrogen and oxygen, with subsequent conversion of the carbon dioxide and hydrogen into alcohols is disclosed. The method includes, but is not limited to including, a direct air capture system carbon dioxide, a water electrolysis unit powered by electricity, a hydrogenation reactor to convert carbon dioxide and hydrogen gases into alcohols, and a distillation system to separate alcohols or a single constituent alcohol from other hydrogenation products. Optionally, these methods may include systems capture water from air, if water or hydrogen is not available on-site, and the distillation system may use propylene glycol as an extraction solvent. This process can be used for on-site production of feedstock alcohols such as ethanol at high purity, and many other applications.