Finland's Neste Oil Corp. and Total S.A. have agreed to jointly study how best to mass produce Europe's "next generation" of biodiesel fuel.
A plant will set up at Total refinery for production that targets a 2008 start.
Neste's own NExBTL fuel recipe will form the core of studies aimed at getting the best from burning vegetable oils and animal fats.
Neste said in a statement that it's biofuel was top-notch, and was lauded by engine-makers.
Euro tax relief is helping to drive this oil company collaboration.