THE company that built one of Europe's largest biodiesel plants said yesterday that it had moved closer to full production.

The Biofuels Corporation has been beset by problems at its Seal Sands plant, on Teesside, and borrowed millions more than expected after delays to production.

Yesterday, Biofuels announced that it had made its first shipments of seven thousand tonnes of biodiesel.

Further shipments are planned in line with production forecasts.

It said: "During April, the plant was on stream for over 80 per cent of the time.

"In line with previous announcements, the focus is now on ramping-up production to the capacity of 250,000 tonnes per annum."

Sean Sutcliffe, chief executive of Biofuels, said: "We are delighted with the progress at the plant. We have proven 24-hour production, are shipping product to customers and are steadily moving towards full production.