BEI’s comments were made in response to an ASX query regarding trading in the company on February 2, when the price of BEI securities rose from $A2.04 to $A2.30.

The company said Bush’s stated goal of reducing US oil imports by up to 75% by 2025 may have increased investor confidence in US renewable fuel companies, including ethanol producer Denco, which BEI acquired on January 3, 2006.

The company also noted its equal partner in Natural Fuels Australia, unlisted company Natural Fuel Limited, had released information to a small number of wholesale investors on February 3 regarding NFAL’s planned activities in the US.

According to BEI, the NFL memorandum included information regarding the potential development and operation of biodiesel plants in North America and the restructuring of a US company (USCo) as a 50/50 venture between BEI and NFL.

BEI told the ASX today that there were many factors involved in these plans that were beyond its control and that BEI was still in the process of performing due diligence before making any recommendations.

BEI said that in recent months, its capital raising initiatives had been largely oversubscribed, and last week increase in BEI securities traded volume and price increase may have been the result of unsatisfied consumer demand.

BEI securities listed on the ASX closed at $A2.39 yesterday, climbing almost 10% throughout the day’s trading.