The Yomiuri Shimbun reports that Toyota and Nippon Oil will work with Petronas, the Malaysian oil company, to develop palm-oil biodiesel for import to Japan or for sale to other overseas markets.
The companies reportedly will start collaborative research next year and intend to begin test production in Malaysia in 2009.
Petronas will supply palm oil, Nippon Oil will handle developing the production technology and Toyota will test the fuel in cars. Based on the results of the test program, the companies will decide the scale and timing of the rollout.
Japan plans to establish national biodiesel standards by the end of this year.