TOKYO -- Toyo Engineering Corp. said Tuesday that it has agreed with German chemical firm BASF AG to cooperate in marketing a new gas-refining technology which the two firms have jointly developed.

The new technology is to be used to make more productive use of gasified coal and heavy oil now that such fuel sources are more in demand due to soaring crude oil and natural gas prices, it said.

The refining technique, called PuraTreat A, will remove a high proportion of sulfur compounds contained in synthetic gases derived from coal and heavy oil without using much energy as compared with conventional methods, Toyo Engineering said.

The eco-friendly method also requires lower initial investment costs, it added.