THE troubled Biofuels Corporation had a turnaround in fortunes yesterday when it secured an order for 15,000 tonnes of biodiesel.

Biofuels has built the world's largest biodiesel plant, on Teesside. The contract takes sales of biodiesel to more than 50 per cent of the plant's capacity.

It will supply biodiesel to the unnamed company from March to December next year.

The company, which is based in Billingham, said in a statement to the stock exchange that it was in discussions about further contracts.

Biofuels has been beset by financial problems and delays to the start of production at its £21m Seal Sands facility.

It suspended trading in its shares on the London Stock Exchange's Alternative Investment Market (Aim) last month to allow crisis talks with banks after losing its biggest customer, Petroplus.

Last week, shares resumed trading after an agreement was reached with Barclays.

This week, another Teesside biofuels and Aim-listed company, D1 Oils, confirmed it had approached Biofuels about a potential merger but said no formal talks had taken place.

Yesterday, a Biofuels spokesman said there was no update on merger talks.

Biofuels had planned to start production at its new plant in September, but delays and problems with commissioning have pushed the date back to February, which plunged the company further into debt.

A merger could secure the long-term future of the Teesside plant and its 40 staff, because the company would be less reliant on the goodwill of the banks.

Biofuels was offered a grant by regional development agency One NorthEast to build two plants on Teesside, but it has yet to take the money, despite its massive debts.

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. The pair remain shareholders, although Mr de Grussa left the company earlier this year and now owns a smaller share.