PTT Research and Technology Institute of Thailand and Toyota Motor Thailand Co. have signed a memorandum of understanding for the joint development of bio-hydrogenated diesel (BHD). According to Toyota, vegetable oil treated with the hydrogenation process is similar in structure to diesel fuel but higher in quality. "It contains a cetane value higher than 80, has more complete combustion, [is] sulfur free, and produces less pollution," Toyota stated. In the research collaboration, PTT will conduct further research and testing on the biofuel and Toyota's engineering subsidiary will evaluate engine performance, testing for any negative effects on parts and fuel injection systems. Toyota said its preliminary tests showed "BHD produces less pollution and allows longer engine life compared to traditional biodiesel."

Shigeki Suzuki, managing officer, Toyota Motor Corp., Japan, said with the Thai government's support of expansion of oil palm plantations in Thailand, Toyota would like to introduce BHD to get the best value out of palm oil and assure farmers that growing palm oil is worthwhile. In addition, Thai Minister of Energy Poonpirom Liptapanlop said the collaboration will lead the way to utilizing non-food feedstocks such as jatropha and seaweed.

Liptapanlop, who chaired the signing ceremony, said the combination of rising oil prices and economic growth is negatively affecting Thailand and that both energy conservation efforts and alternative fuel development are needed to cut oil imports. Public oil company PTT is the first to develop alternative fuels in Thailand including "gasohol, palm diesel and biodiesel B5, as well as natural gas for vehicles, according to Prasert Bunsumpun, CEO and president."