Toyota Tsusho to Produce Jatropha as Alternative Fuel

(Bloomberg) — Toyota Tsusho Corp., the trading affiliate of Toyota Motor Corp., plans to start growing jatropha next year as it bets that higher crop yields and oil prices will make the plant a profitable alternative fuel.

The Nagoya-based company is in negotiations with a Philippine banana plantation to produce the leafy green shrub, Makoto Hattori, a project development manager, said in an interview, without naming the company or disclosing the size of the investment.

Fuel made from jatropha seeds helped power a Boeing 747 flight last year, as record oil prices spurred companies to grow corn, sugarcane and other plants to produce biofuels. Toyota Tsusho bought a stake in Singapore-based seed researcher JOIL(S) Pte. this year to develop a better plant after erratic yields prompted BP Plc and rivals to pull out of production ventures.