Toyota and Nippon Oil will work with Petronas, the Malaysian oil company, to develop a palm-oil biodiesel for sale. They will be both importing and using for overseas sale.

Production is set to begin in Malaysia in 2009. This is pending a collaborative research setup that will begin next year. Petronas will be supplying the palm oil while Nippon Oil will develop the production technology. Toyota’s part in all this will be to test the biodiesel in their vehicles. After that they will decide what size a production this will be.

The most interesting part is Japan is planning a national biodiesel standard to be rolled out by the end of the year. Way to go Japan.