PLANS for the UK's first large-scale biodiesel plant, creating hundreds of jobs, have been boosted by a successful share flotation.

Biofuels Corporation, which is building a £21m plant at Seal Sands, Teesside, made its debut yesterday on the Alternative Investment Market (Aim).

Trading was brisk and peaked at 78p, after opening at 75p, before closing at 74p.

Biofuels had already raised £15m towards the project after ten institutional investors subscribed to the share issue.

In addition, Barclays has committed £17m and a hedging facility for a further £13m.

The company has also agreed a grant package of £1.2m with regional development agency One NorthEast.

John Nicholas, chief executive of Biofuels, said shares had been trading at a small premium on their market debut. He said: "On receipt of monies from the flotation, we will start the chain of reaction to actually getting the yellow machinery on site, which will be very soon.

"Planning permission is in place, and as soon as we get the funds, we should be in a position to get moving."

It is hoped that work on the plant will be completed in the first quarter of next year.