THE company behind Europe's largest biodiesel plant last night refused to name a date when production will be at capacity.

The Biofuels Corporation's brokers, Collins Stewart, believe full production at the Teesside plant will not come until July - but the company last night declined to give a date.

Billingham-based Biofuels started producing biodiesel at its Seal Sands facility at the beginning of this month, but the amount being produced is limited and is not being sold because it is still in the trial stage.

In a statement to the stock market when it started production, Biofuels said quality checks were still being carried out, and once they were complete, full production could begin.

But a spokesman said last night: "The company hasn't given any particular date as it is clearly focusing on getting production up to full capacity.

"They are not disclosing any targets and are instead focusing on getting it up and running as soon as possible."

A series of delays and the loss of a major customer led to production being delayed from the September target date.

And in November, the company suspended trading on the stock market as its bankers threatened to pull the plug.

It went into crisis talks with financial backers and reached an agreement with Barclays to fund the plant to the tune of £92.9m.

The first fuel - once it is produced for sale - is likely to be used in power stations rather than cars. Once quality tests are completed, and production is increased, the fuel will be suitable for use in vehicles.

The plant converts rape, palm or soya oil into biodiesel.

The company was set up by Australian businessmen John Nicholas and Max de Grussa, and raised £15m when it floated on the stock market last year. It has raised a total of £44m in two placings.

Renewable fuels companies hope Chancellor Gordon Brown's Budget next week will contain tax breaks for users of biodiesel.