Toyota has announced plans to commercialise a plant-based bio-fuel by 2020.

The bio-fuel will be produced from a new strain of yeast that was developed in-house by Toyota, the Nikkei business daily reported.

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Over four to five years, the automaker will work on low-cost techniques to produce the bio-fuel.

The capital required for the mass production of bio-fuel is huge so Toyota may look to expand its tie-ups with energy companies, the report added.

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