Mexico City will invest just over $1m in the project, which will rely on Colombian aid. No timelines for the so-called Mesoamerican Project were provided.
But the pilot plant will have an initial capacity to produce 12,000 litres of biodiesel per day using jatropha as fuel stock, agriculture officials said.
If successful, the Mexican-Colombian biofuel venture could be expanded to oil-poor nations in Central America as well.
Mexico,