In Texas, ExxonMobil announced an agreement with Renewable Energy Group Inc. to study the production of biodiesel by fermenting renewable cellulosic sugars from sources such as agricultural waste. The agreement is between ExxonMobil Research and Engineering Co. and REG’s Life Sciences subsidiary. Terms were not disclosed. REG has developed a patented technology that uses microbes to convert sugars to biodiesel in a one-step fermentation process similar to ethanol manufacturing. The ExxonMobil and REG Life Sciences research will focus on using sugars from nonfood sources.