Biofutures International, a stock which has had a pretty rough time since going public at the peak of the market in early May 2006, has just announced news that its unit Zurex Corporation Sdn Bhd has signed a deal with JJ-Lurgi Engineering Sdn Bhd which is to supply components to build a biodiesel plant in Lahad Datu in Sabah, Malaysia.

Of background interest here is that Malaysia took the political decision in late 2005, to encourage biodiesel production from palm oil, to combat the high price of oil and to increase demand for domestically produced palm oil.

The lesson from this is that whilst not everyone is convinced of the environmental and economic benefits of biofuels, in many parts of the world, they enjoy substantial political support.