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/

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!

Come on guys, Oil is finite.
No country is going to lower their income by lowering the price of oil when all other commodities are increasing in price.

myownmoney
Well said my own, in the mean time we make loads of dosh when this plant comes on stream and any future plants that they develop. The least that you are going to do from this sp is treble your money IMO.

Personally, I back both camps, though for sure there will be plenty of alterntaive fuel casualties ...... Was in GTL, DOO and BFC, but market expediency has reduced me to GTL pro tem.

Don't forget that legislation in the USA is forcing the use of ethanol, so it's a must have.

That's why I shall hold them for a long time! ...... What a bloodbath though for DOO and don't think BFC is so clever today either, but then little is except short positions.

I think you forced off teletigger, although he did seem a little wild with his suggestion of crude at only $20. I don't forsee a fall in the price of crude below $55 for some time, there is simply no viable alternative YET that has the capability to compete with oil, tele may argue in 5 years there may be, but then resources would have been further depleted and Several tiger economies consuming oil faster than the US.
Cynic I think DOO could be worth investing at only 200p and BFC have scared me away permanently, how would you rate GTL against DOO, cosnidering the current market climate? Thanks, GDP.

VeraSun Energy Corp., a leading US ethanol producer,

VeraSun shares closed up $7, or 30.43%, at $30, well above their launch price of $23 a share.
"The timing of the VeraSun debut couldn't be more sublime," said Tom Kloza, chief oil analyst at the Oil Price Information Service (OPIS). "Thanks to perceived shortages, the renewable fuel is fetching prices that are more than twice where they were six months ago, and as much as four times higher than selling prices earlier this decade."

GTL 's highly ambitious expansion plans seem interesting, with regard to building several palnts, however won't this, thinking of basic economics, dramtically increase supply while demand remains similar leading to a fall in the price of ethanol. ??

The era of alternative fuels has barely begun ...... that GTL is building extra capacity merely shows their belief in its future, as must the banks and investors putting up the money ...... the only question for you and others is whether or not you believe that ethanol is a viable alternative, notwithstanding the current high cost of production