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/

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.

Growth Company Investors award-winning team offer outstanding share recommendation performance. Get immediate access to all these recommendations click here.

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

Yes I wish i had some more funds but , and would buy some more , but tied up in SEO
Lindos

so why not cut SEO? ...... though it's not a stock i know, all i ever see on this site is investor after investor bemoaning the loads of dosh they have done ..... cut and run and rebuild elsewhere

This make GTL look very cheap at moment, a vision of things to come.

BusinessWeek
JUN. 9 11:19 AM ET Underwriters for the initial public offering of VeraSun Energy Corp., a leading US ethanol producer,
Verasun 17 million shares(20% of the equity) values the company overall at $2 billion

VeraSun Aurora is one of the five largest ethanol producers in the United States
The plant produces more than 120 million gallons of ethanol per year. This is enough fuel for the average car to drive 3 billion miles
The VeraSun Ethanol Plant processes more than 43 million bushels of corn per year
The plant produces 390,000 tons of Distillers Grains
There is no liquid or solid waste from the plant - the entire kernel of corn is either converted to ethanol or DDGS
The plant runs continuously, 24 hours-per-day, 7 days-per-week, throughout the year

Driver .,... at the moment ethanol from corn kernel only is expensive to produce and not very efficient ..... the real pay-off will come if/when the technology is developed to use cob+kernel

The biggest problem I see with all these alternative fuel companies is that the oil producing nations can adjust their prices, overnight, and alternatives just can't compete. Oil @ $20 per barrel leaves the likes of GTL dead in the water, whereas nations can sustain these prices for years if necessary. It would need government policy to buy all alternative output.....then oil producers come down to $10 per barrel??
The CEO of BP has just announced oil prices will halve within 5 years. I personally think he's a little conservative on that estimate.
regards

Do you think the likes of Saudi would permit their dwindling reserves to be flogged off at bargain basement prices? I think not; there is no % in it for them for their reserves are ultimately finite and they need to make as much revenue from them as the market will permit. Even if alternative fuels really take a hold in the market, oil and similar will still be in high demand.

teletigger
I read the story that was the opinion of one person I personally don't think we will ever see $20 a barrel again not with the politics of the world today.

The market will decide the price of Saudi oil. When more of these alternative oil companies come on stream, all natural oil producers will have no alternative but to use their price as a weapon. Better to sell the last few billion barrels at $5 per barrel than to leave it in the ground. With the advent of fuel-cell technology, plus the proliferation of organic fuel companies, oil has no alternative other than to get cheaper.
I guarantee you that in 10 years time I, and millions of others, will be producing MY OWN fuel, for my tractors and car. (yes...I own tractors) The technology for this is available now.
regards

teletigger .... in your dreams! ..... if the market forces down the price of crude, then the big producing countries will just turn off the taps as they have in the past ..... our company does a lot of biz with M/E wellhead service companies, so for once, I do have some idea what I am talking about!

teletigger
Just like the Tardis a tigger, it all sound a bit expensive to me having to change all those petrol engines to electric. I think most of us will be long gone by then.

A fuel cell is an electrochemical device that produces electricity by separating the fuel (generally hydrogen gas) via a catalyst. The protons flow through a membrane and combine with oxygen to form water - again with the help of a catalyst. The electrons flow from the anode to the cathode to create electricity. As long as the reactants - pure hydrogen and oxygen - are supplied to the fuel cell, it will produce electrical energy.

Driver....that one person you are choosing to ignore is only the CEO of one of the worlds biggest oil companies. You're quite right. What does he know! I feel he deliberately under-estimated the situation. A damage limitation exercise. Well, It's his job after all.
Cynic, your company does lots of biz with M/E (?) wellhead companies. And just how does that make you an expert in organic alternative fuels?
These alternatives will come on to the market at an ever increasingl rate over the next few years, and I would even predict that, in the West, we would be prepared to pay a small premium over "foriegn products". AIMHO naturally.
regards

Tele ... stop getting heated ... it doesn't make me an expert in anything let alone alternative fuels ..... however, our business does allow some insight into the machinations of Aramco ...... history also shows that OPEC and similar are adept at playing the crude price game through the very simple expedient of reducing or increasing extraction.

If you want to short crude, the market is waiting for you ..... and the very best of luck!