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/

I see both the graphs have gone tits up now!

ghjones2
Fixed the corn chart.

Can some one help me with the right ethanol chart here's the link.

http://new.quote.com/search.action?q=ethanol&qt=contains&e=&t=future&to=86&a=overview&o=50

No idea sorry, not so sure it matters anyway Driver since they have hedged all their output for this year as they have with the corn. So price fluctuations mean very little at the moment.

Potts
All the same nice to have them in the header.

a cost benefit analysis may show otherwise.

e.g. your time and effort agaisnt graphs that mean very little at the moment and have a natural tendency to fail, IMO.

Updte 24/05/07

'Whilst it remains early days for production at our ethanol plant, we are happy
to announce that we are continuing our record of delivery with a profitable
first quarter's operations.

http://moneyam.uk-wire.com/cgi-bin/articles/200705240701151460X.html

a pretty muted sort of comment ..... certainly gives no reason to jump on board

better to remain cautious and keep expectations low than over promise and fall short!

cynic
This is the bit we want to know, still early days "with a profitable first quarter's operations".

you keep buying them m8 .... lol!

cynic
What you cant get away from is that there will be profit year in year out.

don't rise to the bait .... silly boy!

and that you are constantly negative? whats it like living in a world of pessimism. Constructive comments are ok, but sniggering at people who have possibly made a loss with comments like "you keep buying them m8..... lol!" is a bit derogatory.

its really not that offenisve. just small banter , its more than pathetic to be wound up by such comments.

Good reaction to the news but a shame that it fell by the same amount the day before the RNS. Potential is still very good but the cost of expansion and debt incurred worry;s me.

quite so GDP ..... "sniggering" at others' losses has never been my style .... but still def not buying myself and same comment "Keep buying them then m8!" still applies!

Potts
I don't mind the odd bit of banter from the cynic cause I will LOL when this get to 800p and remind him of his posts.

if GTL actually starts moving, i may even buy back in .... but pro tem, certainly not

Cynic
Are you Ultimate or just plain Cynic.