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/

What is the cash position of GTL?

Is there a fundraising coming I wonder?

the oil price is falling so is all share in the oil sector, i think one should pay attention to FT all share oil index. the market is always looking forward but the oil price will rise again. i mean next summer for sure at least. if nothing is wrong with the business itself then one can afford to buy more if he or she wants to. Most share do fall from september to December. it is bit boring for me except when one is shorting or buying some excellent values

Andy
Further fund raising may take place in the future if they expand (see below) I dont see that as a problem a 10 bagger from here at least.

by: Timon Day
GTLs mega fundraiser (Shares Mag)

Hugely ambitious plans are being hatched to make GTL Resources (GTL:AIM) the largest ethanol producer in America by spending 400 million on
five new plants. Its first plant at Rochelle, Illinois is nearing completion and is expected to be in production by November, making 50 million
gallons a year. A second plant will almost certainly start construction within a year and will double output to 100 million gallons by Spring 2008.
But this is thought to be just the beginning of GTLs grand plans. Ethanol has doubled in price over the last two years to $3 a gallon about the
same as the petrol it replaces. Ethanol currently receives a 50 cents a gallon tax break but even if this is trimmed back to 30 cents in 2007, it would still
leave the green fuel additive highly profitable. GTL reckons it can produce ethanol at around $1.10 per gallon as long as corn from which ethanol is extracted stays at around $2.20 a bushel. This would mean GTL making money as long as oil prices remain more than $20 a barrel and highly profitable if it stays at the current $60-$75 range. Profits from its first plant will be around treble analysts forecasts of $8 million to March 2008 if prices remain at current levels, slashing the shares prospective PE to around six on an untaxed basis. Consequently, every man and his dog are scrambling to build ethanol plants. GTL reckons it has the edge being one of the first listed companies, as opposed to farmers cooperatives, in the sector. It is close to buying three new sites in the Illinois wheat belt and production at Rochelle could quadruple to 200 million gallons a year. In total GTL might make a total of 500 million gallons a year or some 7% of estimated total US production of 7.5 billion gallons ethanol by 2012. Other records could be set if GTL persuades its key shareholders to stump up nearly 150 million equity, compared to the current market value of some 80 million. The rest of the 400 million needed to build the plants would be borrowed. The money could be raised late this year either on a groundbreaking deferred-payment basis or through a revenue-sharing agreement.

The farmers are getting excited even if the sp isnt.

Ethanol plant could boost corn prices
http://www.kcchronicle.com/BusinessSection/haase/288754653564685.php

It is blue, blue, blue. rising fish

It looks like we hit the bottom yesterday nice bounce.

it's gonna fly, fly,fly, fly, fly away. do not take this too seriously. just a joke however GTL is top banana, and i mean it.

A lot of volume today over 20m shares traded and mostly buys some big players now on board it looks like onward and upwards for the sp as production nears.

Don't like being pedantic, driver, but volume over 64m and most were (recorded as) sells.

But I agree, once the RNS comes out saying that the Rochelle plant is on line and swinging into production, the only way for this share is up up and away.

StarFrog
They may have been recorded as sells but most of those early trades where buys thats why the price went up.

From another board, for the uninitiated Illinois River Energy is owned by GTL Resources (a good find)

Entering a new phase
BY MARY ELLEN TAYLOR
ROCHELLE Illinois River Energy LLC, an ethanol production facility located on 81 acres off Steward Road south of Rochelle, will receive its second installment of the $5.5 million grant it received from the states Opportunity Returns grants in December.
The State of Illinois has awarded more than $25 million in grants and additional support to help build five new ethanol and biodiesel production facilities across the state.
Well receive $2.2 million at substantial completion (when Phase I becomes operational) when we begin grinding corn in December of 06, said Vincent McCabe, CEO of Illinois River Energy. We have more than 250 workers here every day to make sure it happens.
The officially scheduled operational date is Dec. 4, 2006, But I think well beat that by a couple of weeks, McCabe said.
In addition to the upcoming December payment, Illinois River Energy LLC received the initial payment of $3.1 million in October 2005 to begin construction, and will receive the remaining $200,000 one-year after the start date, which will be December of 2007.
Governor Rod R. Blagojevich said the new plants will spur about $334 million in private investment, produce 225 million gallons of biofuels each year, create almost 150 new jobs and reduce Illinois dependence on foreign oil.
Illinois River Energy anticipates the creation of 45 new jobs with Phase I producing 50 million gallons of ethanol annually while utilizing 18 million bushels of locally grown corn.
Phase II will begin construction in April of 2007 with a completion date scheduled for May 2008. At that time production will double with 100 millions gallons per year, using 36 million bushels of corn.
Our belief is that 100 percent of the corn will come from Ogle, Lee, DeKalb and the surrounding counties, McCabe said. Weve already begun to contract grain for December.
McCabe said the company is using Cargill to acquire corn from area farmers and that a Cargill representative has an office on site.
The four other sites who have received Opportunity Returns grants include Central Illinois Energy LLC in Fulton County, $6.35 million; Center Ethanol Co., LLC in St. Clair County, $5.7 million; Biofuels Company of America, LLC in Vermilion County, $4.8 million; and Stepan Company in Will County, $3 million.

Nice find Driver. Grants save on burning Cash! :-)

So how is the ownership of the plant spread? i.e. what is GTL's stake?
Also couldnt believe that shares Green Section recommended investors to steer clear of GTL!

GD Potts, from the latest Annual Report - GTL have an 85% controlling interest in IRE

G D Potts
Illinois River Energy (IRE) is owned by British-based GTL Resources, plc, which acquired controlling interest in early September of this year. Construction on the ethanol facility got underway Sept. 6 and is expected to be producing ethanol by late 2006.

http://www.illinoisriverenergy.com/html/nr051003.html

Ok, thanks was just making sure.

website has been updated for september

Hi Driver, can you tell me what is the news on the australian and Oman plants,

please.

dodgybob
GTL are only building one plant at the moment at Rochelle, there may be more plants in the future see post 238.

From the Results 08 August 2005 as far as know the below still stands.

The Australian methanol project remained stalled by the current reticence of gas
field owners to commit to the necessary long term contracts. The project is on
hold pending negotiation of a suitable gas supply contract and more favourable
exchange rates.

Cheers lindos

From the Web Site updates 6/10/2006
1 0CO2 Stack Installation
2 Methanator and RO Tanks
3 Methanator and RO Tanks