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/

giggin
Got this from google

How much does a gallon of ethanol cost the public? A: On April 25, 2006, about $3.31

Driver.
Thanks for the info.
By my reckoning they are going to need 150,000 acres to produce 50m gallons of ethanol using corn, equivelent to 230 sq miles, a sizeable chunk of land in the U.K.
but a mere speck in the U.S.
Do you know how ethanol is taxed in the U.S. and are there any ethanol producers in the U.K
Regards,
Giggin.

Giggin - the more interesting plays in UK are BFC and DOO ..... I am fortuante to be holding both already, but they have a very favourable mention in Shares Mag

giggin

Im not sure on the tax they may even get a subsidy but heres an interesting article on imported ethanol tax dated Friday, May 5, 2006.

http://seattlepi.nwsource.com/national/1155AP_Ethanol_Imports.html

giggin

This looks like it. Published: Monday, May 01, 2006
Bills moving through the Legislature would lower the state tax on each gallon of ethanol-blended fuel to 12 cents, down from the 19 cents figured into a gallon of regular gas.

http://www.miningjournal.net/stories/articles.asp?articleID=3230

Driver
Thanks, interesting links.
Giggin

Big 3 big on ethanol expansion
The Big Three automakers on Thursday pressed Congress to help make ethanol fuels more widely available.

http://news.google.com/news?ie=utf8&oe=utf8&persist=1&hl=en&client=google&ncl=http://www.detnews.com/apps/pbcs.dll/article%3FAID%3D/20060519/AUTO01/605190327/1148

I like this company a lot too ..... The news on the legislation isn't particularly new (note date) and there is also the problem that ethanol from maize is still very expensive to produce as currently it only uses the kernels .... However, I believe they are working on technology to make the whole plant convertible.

I also have DOO and BFC is my portfolio of fossil-fuel alternatives ..... All get there through different applications.

cynic
You must have miss read the date

Chicago Tribune, United States - May 19, 2006

Driver - was looking at your post of 12th May ..... Thought it was much the same, but obviously wrong .... But anything that keeps this share in the limelight with good publicity (cf RPT for the reverse!) has to be good news.

It looks like the sp has bottomed out a good time to top up.

Pictures Of The Site Under Construction March 27, 2006 now in the header.

http://www.illinoisriverenergy.com/html/construction.html

From another thread.

GTL awaits Mid-West launch
Companies: GTL
05/06/2006
Ethanol hopeful GTL Resources hopes to start production this year with a 50 million barrel-a-year plant near Chicago.

AIM-quoted GTL, headed by former Lloyd's insurance chief executive Peter Middleton, hopes to extract some 8 million annual revenues from the plant, whose construction follows the company's reverse takeover of Illinois River Energy. That deal, funded by a 20 million placing at 1.25p, took bombed-out GTL into the US ethanol business, which is being encouraged by US legislation as offering motorists fuel which is cheaper than petrol and is not imported from hostile parts of the world. While ethanol, as a corn derivative, provides extra income for Mid-Western farmers.

Middleton says GTL is sourcing corn from US food giant Cargill and intends to market its fuel through another company, United Bio Energy. He argues the new plant will be able to produce fuel economically at the equivalent of $19 to $20 per barrel of oil, which now trades at more than $70.

GTL hopes to start producing from the fourth quarter of this year and plans to double capacity to 100 million barrels a year with a second 20 million-plus plant, to be funded if possible with 60 per cent debt and 40 per cent equity. Middleton says the company is reviewing four possible alternative projects to achieve this, adding that the ultimate goal is to produce 400 to 500 million barrels a year, 'putting us into the top league'.

He argues US Ethanol production is expected to reach a plateau in four or five years and says the company is looking at other markets, in particular China. He says GTL is also investigating the economics of using corn stalks to produce hydrogen for future fuel batteries.

Revenues from ethanol production should start to show through in the company's figures for the year to March 2007. That should make a welcome change, after losses of 12.9 million in 2004-005 and a 2.4 million deficit in the six months to last September, and house broker Arden forecasts 4.65 million pre-tax profits for 2007-08.

Since GTL's 30p float eight years ago, its shares have performed disastrously for most of the time, falling to 0.99p in May 2005. They have rallied to 2.65p on hopes for the US project and, if that looks like delivering the goods, they could revive further.

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Robert Tyerman

Whoops

moneyman
Cheers for that but can you please check the thread before posting even the post above yours will do.

write up in shares magazine
new plant to be built with a possible 3 more
fund raising expexted
read the article

lindos

lindos
Yes I have read the article it looks like GTL have very big expansion plans we will have to see how it pans out if their plans work out this could be a multi bagger IMO.

In the bloodbath, I sold my holdings in my other 2 alternative fuel stocks (BFC and DOO) but gladly kept these ...... May (or may not) buy back BFC and DOO at a later date

cynic
That was a wise move I think you should hang on to these long term.

I intend to ... I like the look of this outfit and once the market regains its equilibrium and my account starts looking healthier again, I may well buy more