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/

im of the same opinion. just annoyed that it made front page

good to see the ethanol price continuing to rise though!

GHJ, I agree - and corn is way down, which means the unhedged purchasing will come in pretty cheaply.

Talking of pigs, any chance of a bacon sarnie? ;o)

the rising price of ethanol will not have a material effect on GTL for at least a year, they may secure contracts in around 8 months as higher prices but for now we're stuck with what they have hedged it at.

That's true, apart from for the prodution over about 47.5 milion gallons which is unhedged.

71k buy must have been the pig picture.

It's good to be able to take a step back and see the pig picture, Driver.

GTL is a sleepy share...not moving at all in this desirable market.

hlyeo98
So was SER its just woken so will GTL

soul with respect the production that isnt hedged accounts for a very small % of GTL profit - (Also how do you know its not hedged anyway, the Arden report suggested otherwise)

Well, I haven't seen Arden, but am going by comments I remember reading in one of GTL's longer RNS (Trading Update, or something simliar, I think - sometime since production started, anyway), in which they explained how much of production was hedged and at what kind of price.

Read Sunday Times Money on the effect of making ethanol from corn ...... that is why i have decided that this is not the route of the future, though of course biofuels as a generic term obviously are

Im out of this, ableit temporarily, since i have taken an extremely wild gamble on a uranium company. (Well at least thats what im hoping it is)

Potts
What have you done!!!!!!

hopefully something that will make me a lot of money! Was getting bored and thought that the sounds coming out of the industry were far to negative at the moment - and uranium has since come along and tempted me slightly too much.

Still not moving...zzzzz

hope you all read ST article as mentioned above

cynic
Will it affect GTL making any profit.

any; prob not .... decent; yes! ..... surely i don't need to spell it out?

cynic
No one likes CAPITA look at the sp