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/

robert - yes good fortune if that is so I am sure we will look forward to your next posts.

Interesting comment in the F.T. 4th Nov concerning the price of 'Corn'.
"Corn prices have risen 25% in the past month & 60% this year".
Corn futures are currently trading at $3.4475 a bushel.
One of GTL's main problems may be locking in corn deliveries at a realistic price to protect profit margins.

i dont know a lot about this, but the price of ethanol might go up as well.

HARRYCAT
I have said this before the price of corn has a limit they are not going to cut of the hand that feeds it. (The price could be going up because of demand from ethanol plants)

GTL Ethanol plant may have the power to purchase stocks from farms year on year @ set prices once they have capital removing price variations for the farmers and GTL.

Long Sunday Times article yesterday, made the observation that (diesel) fuel from jatopha (DOO) which is non food is much more "friendly" than ethanol from (sugar beet) and wheat and maize (GTL) ..... also, don't forget that wheat/maize futures will reflect significantly higher demand which will have a direct impact on the cost of producing the ethanol.

OK Cynic - your view on GTL is getting a bit repetitive.

why do you feel that is repetitive (actually I bought some the other day) ..... the basis of the last postr is taken from yesterday's papers, so scarcely old news .... so what's your problem? ...... you don't like its content perhaps?

i'm in as of last week... possibly short term though, havn't decided yet, but expecting buying up until production, at which point it may become overbought...
Cynic, do you have anything to do with Gulfsands, nowadays...?

no ... haven't been in that share for some months .... have lost track of it

the general jist of your Pro DOO posts are whats repetitive especially when this is a GTL thread.
don't take it too heavily.

i don't ....i hold both

Am i missing something, is cynic some kind of legend, people keep asking him/her for advice.

No offence is intended, i'm just quite new and hold gtl and people keep bantering him/her!

cynic is a leg end.

dyor, nag etc

cynic, often intentionally, sets himself up as the butt of others humour or abuse ...... his wooden leg end has now called upon him to purchase a parrot (makes sense)

OK - not the greatest move today - i thought GTL would be accelerating higher in the run up to december but ...

A 1 for 100 share consolidation is on its way if approved at the AGM on 30th November

is this good or bad for gtl.

i SINCERELY DOUBT it ghjones