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/

Corn now below $4.

Strange that with all this good news, and yet price is still depressed. I know market sentiment is against the sector, but it will have to change on the back of solid results, which I'm convinced that GTL will deliver.

Latest view from Arden See Below...................

Not often on these pages we get to write about biofuels. And firms in this sector that are succeeding seem to be few and far between. Arden Partners has an upbeat message for those following GTL.
Says buy with a price target of 150p share. It adds: GTL has built a 50 mgpa ethanol plant at Rochelle, Illinois which is now
fully operational. With the construction risk eliminated the plant is set to generate an attractive cash stream, even with the current spike in the corn price. In addition, plans to double capacity provide medium term operational gearing benefits and financial upside.

I certainly hope that s a misprint!!!

aRDEN HAVE MADE A NEW REPORT ON THE 26TH O MARCH BUT CANNOT FIND IT ANYWHERE - ANY HELP POSSIBLE?

Green carshow in the Eden project today and pushing the use of ethanol , Can only help our cause.

Corn dropping sharply again: $3.85, while ethanol holds steady at $2.18.

Could allow GTL/IRE to negotiate cheaper corn forward contracts for the following year.

G D Potts

It looks like an error, I think they just mean buy at 1.50.

Will try and find link and post this evening.

Thanks - Ive been on Arden s website and been subsequently directed to numerous other sites to access the report - with no success.

Mr Potts

Try the site below this is where I found the info.

www.market-insider.net/?p=1617

U.S. farmers aim for record corn crop, ethanol riches

"......Planting plans are months away from harvests, however.

"The weather is going to drive it all," said Tom Buis, president of the National Farmers Union, pointing to the uncertainties of the growing season.

The stampede to corn may become a damaging ethanol "blow-out" that slathers pesticides and synthetic fertilizers on cropland, which will leach into waterways, said Ken Cook of the Environmental Working Group......."

good article in today's Telegraph (saturday - page 29) on expanding maize farming in usa to meet ethanol demand ..... it also comments on the adverse effect this is having on animal feed prices etc etc.

i confess it is that sort of downside + the seeming excessive cost of producing ethanol from maize that makes me favour the likes of DOO over GTL

as you have previosuly stated many, many a time cynic

indeed i have, just as i regularly warned about BFC, SUB, EME, ELP and a few others ..... but equally praised the likes of DOM, RTN, PFC, POG etc

i can see your point of view and i might be looking to invest more in D1 - I m expecting some profit taking in the near future as the news flow dries up.
But i still believe that the money that will be made by GTL in the next few years will justify a much higher SP and thats why Im still holding.

Ethanol and old George.
http://www.bloomberg.com/avp/avp.asxx?clip=mms://media2.bloomberg.com/cache/vNRc41oRuuP0.asf

thanks for the link spitfire but im trying to find the actual report. On Ardens website it says it constructed one and released it on the 26th of march. Thats what im looking for

Has everyone rann away? Been away for couple of days,no posts since March 31.

chesney
Waiting patiently, no floods no earth quakes, no tornados at the plant so must be producing loads of the stuff, revenue and profit just waiting for the rise and waiting and waiting.

funny you should mention that Driver I was wondering if the plant was near any areas that are particulalry tornado prone!
Just got the new Arden Report through - I'll update on any interesting points after I read it through today -GDP.