US biodiesel firm Renewable Energy Group has completed the first green IPO of the year, raising $72m yesterday as it listed on the Nasdaq stock market under the symbol REGI.

The flotation came in slightly below the company's expectations of raising around $86m, with shares climbing fractionally during their first day of trading to close at $10.10.

The company is now expected to use the new funds to support international expansion and its efforts to diversify its soy-based biodiesel business in favour of new renewable chemicals and second-generation biofuels.

The funding is also expected to be used to buy a production facility in Illinois, which the company is currently leasing.

The company, which claims to be the largest biodiesel producer in the US, had originally planned to price its shares at between $13 and $15, but ultimately lowered the price to $10.

The IPO will inevitably spark speculation about the health of the green IPO market. A significant number of clean tech firms are said to be considering IPOs in the next few years as they seek to scale up production operations. Many, however, have been discouraged by a series of disappointing green IPOs, as well as the experience of companies such as biofuel firms Gevo and Amyris, which have seen share prices fall significantly since they floated.