Gas to Liquid
Commencement of Operations Started 28/12/2006
The strategy of GTL Resources plc is to produce liquids such as methanol and ethanol from stranded gas, corn and other feedstocks with quality counterparties. GTL manages all aspects of a project: finance, feedstock supply, production and marketing.

In line with its strategy of seeking to develop and exploit markets for alternative fuels, GTL has, since the beginning of 2001, concentrated primarily upon developing methanol projects, principally in Australia, and, more recently, ethanol project work. The Board has recognised the strategic benefits of acquiring a cash generative asset on a shorter time scale than the typical methanol construction time of three years. In furtherance of this strategy, on 6 September 2005 GTL Resources acquired a controlling interest in Illinois River Energy (IRE) to build an ethanol plant at Rochelle, Illinois, through its wholly owned subsidiary, GTL USA, which has been established for the purpose of investing in ethanol projects in the USA. GTL USA has invested in IRE by way of a subscription for units of IRE pursuant to the Unit Purchase Agreement.

This project has the advantage that the Plant is expected to produce revenues on a shorter time scale and at a significantly lower capital cost than the methanol plant in Australia.

The Company intends to further expand within the ethanol industry in the United States or other suitable markets by selective acquisition of low cost production facilities. The Company sees itself as a potential consolidator of ethanol plants in a particularly fragmented market.

FT Tip
GTL Resources, an Aim-listed company. It raised money to build an ethanol plant in the US. Raw materials costs have risen but the price of ethanol has gone through the roof. The earnings potential should be spectacular.

New Plant

Construction started at Rochelle, Illinois site in September and production from the 50 million gallon per annum ethanol plant is expected to commence in the fourth quarter of 2006. Following unusually mild weather in Illinois the project has progressed well and is on schedule and on budget. Whilst the Companys main efforts centre on the successful delivery of the US ethanol project at Rochelle, the potential expansion of that site to 100 million gallons is being investigated. In addition and consistent
with GTLs stated strategy for the expansion of its interests in the ethanol industry, other ethanol opportunities have also been identified and will be analysed. Pictures Of The Site Under Construction March 27, 2006 http://www.illinoisriverenergy.com/html/construction.html


Arden
http://gtlresources.com/documents/ArdenAnalystResearchNote.pdf
http://www.gtlresources.com/documents/ArdenAnalystResearchNote.pdf
BBC News Item On Ethanol
http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_4940000/newsid_4948400/bb_wm_4948456.stm

Ethanol Priceshttp://ethanolmarket.aghost.net/
Ethanol as a Transportation Fuel
http://energy.ca.gov/afvs/vehicle_fact_sheets/ethanol.html

Annual report for 2006
http://www.gtlresources.com/documents/GTLAnnualReport2006_001.pdf
Pics from Ethanol Producer Magazine of GTL's plant.
http://ethanolproducer.com/plant-images.jsp?plant_id=302&image_id=59
Commencement of Operations Started 28/12/2006
http://www.gtlresources.com/
Economics of Ethanol
http://www.ces.purdue.edu/extmedia/ID/ID-339.pdf
2 July 2007 GTL Resources FY pretax loss narrows, plans 13 mln stg placing to fund expansion
http://moneyam.uk-wire.com/cgi-bin/articles/200707020705014067Z.html
GTL Web Site
http://www.gtlresources.com/

current prob is likely to be sub-standard ethanol or even base petrol

Looks like I missed all the fun yesterday I was out all day when we had the ethanol crisis of cause the stuff works its been working for years this will all be forgotten in a couple of days GTL cant get the blame for Tescos using blue strip petrol. The lower this gets the more I will be able to add to my portfolio Not worried.

Several race teams use ethanol so it can't be that bad!

laurie
Dead right it's in the header.

http://news.bbc.co.uk/nolavconsole/ukfs_news/hi/newsid_4940000/newsid_4948400/bb_wm_4948456.stm

GDP, I haven't yet had time to read the Arden report. The corn price is in cents/bushel.

Today's European edition of the FT mentioned in the commodities column that ethanol production in the US is seen as likely to outstrip current demand.

But if that's the case, why does the ethanol price still seem to be climbing rather rapidly?

I'm no expert on commodities but I believe the price of Oil has risen sharply recently and this is usually reflected in ethanol prices - also as oil rises so does the price of gas (Needed to make ehtanol in one of the production stages) meaning that the cost of making ethanol is rising too which usually results in a rise in the price of ethanol.

The arden report IMO makes for fantastic reading since the conclusions they draw are very attractive whilst the data they use is, as spitfire says, extremely conservative, gives me the hope that GTL will break 4 one day.

Arden In The Header.

Good - everyone bear in mind figures they use are very old (Info and share price data is all pre-consolidation), which makes, imo, the report seem all the more positive for gtl.
It also mentions that we could achieve better yields per bushel - which would once again adjust soul/spitfire s figures more favourably.

When we get one of these babies we'll be back in action!!

Renova Energy plc

Quarterly operating update

Renova Energy plc (AIM:RVA), the integrated ethanol production, distribution and
marketing company, today provides its operating update for the 9 months ended 31
December 2006:


62% increase in sales volumes to 7.0 MMgal (2005 - 4.3 MMgal);

21% increase in average realised prices to $2.31/gal (2005 - $1.91);

63% increase in average daily production from the new production
facility in Torrington, WY (compared to the old facility on the same
site); and

20 MMgal/y plant in Heyburn, ID, on schedule for first production
before the end of 2007.

Sales and Production

any ideas as to when we can expect a similar announcement/interims etc?

Hope to see some update on the website early next week was going Thursday last week but held off.

the above RVA rns was 1/2/07 at which point sp was 170 .... market clearly thoroughly impressed as sp has headed straight south thereafter with sp now languishing at 120 even after a 6.50p recovery on Friday ..... mmmm! just can't wait for a similar rns for GTL!!

cynic
That's properly some thing to do with this.
RVA 62% increase in sales volumes to 7.0 MMgal (2005 - 4.3 MMgal);

Hopefully this is what GTL's update will look like in 2008
100% increase in sales volumes to 106.0 MMgal (2007 - 53 MMgal);

Current estimate is 53 million gallons for this year.

laurie
Cheers edited above post.

Well, at least GTL's SP is holding steady this morning while the FTSE has drope 100 points. Maybe at mkt cap 30 mil, people are finally saying it's oversold.

Ethanol price now 229; corn has dropped again to 429. Eth is therefore up 15% n a month.

soul* ..... in this morning's atmosphere of effective blind panic, oversold does not i am afarid come into the equation ...... that said, there are, or will soon be, some quality stocks that will definitely look to be in the bargain basement ...... the same does not necessarily follow with these 3rd-raters.