Nippon Oil, Toyota to develop biofuel

Nippon Oil Corp. and Toyota Motor Corp. are to jointly develop a new diesel fuel made from palm oil, in conjunction with the Malaysian state-run petroleum company Petronas, sources said Monday.

The three companies will start joint research in fiscal 2007, and begin test production in Malaysia in fiscal 2009.

It will be the first major attempt in the world to convert palm oil, which is extracted from coconuts and commonly used in margarine and pastry, into automotive fuel, the sources said.
Daily Yomiuri