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/

GTL will not be in competition with Ensus or any other bio fuel producer there is plenty of room for all of them, there also isn't any problem with future share consolidation, I have held Dana for years they did a 100-1 and now look at them over 13 and I still hold, I can see GTL going the same way this is a long term hold sit back and be patient this share is a multi bagger consolidation or not.

the market doesnt seem to think so -

the consolidation is irrelevant ..... it's just a paper exercise ..... the only thing that will make GTL amaize will be when it starts jumping on the oilies corns! ..... more seriously; when it has some solid production or similar news to impart.

cynic , have you had a look at the "ethanol will move grain prices" over on the traders side

This was one of those dumped yesterday.

Paper exercise it may be but these consolidations have a tendency to drop off, of course I can think of 2 or 3 exceptions, this may be one of them, especially if it does it's drop before the consolidation.

Doc .... no, but that is obvious ..... which, by the way, is why i like DOO which makes its bio-diesel from non-food stock (jatophra palm seed)

.

starting to buy gtl get on quick,plant will start up soon.watch them fly.

yeah, yeah!

is the recent drop in GTL sp, in sympathy with BFC, the differences are obvious, but, similar sector...? i couldn't help top up yesterday@ 2.08p

GTL and BFC have no similarity .... only the sector is common to both.
BFC makes bio-diesel from used cooking oil and similar (from memory) and is almost bankrupt again, hence the fall in price.
GTL is perhaps falling because they rely on foodstock - i.e. wheat and maize - which being subject to commodity trading prices, and due to increased demand partly for ethanol production, will almost certainly rise.

corn prices up 40% in the past month

i carnt see how you can fail on this share price, remember its going to double the size of plant.money money money.

sure but are they going to make any money out of all this ethanol with input prices rising so steeply?

dave7010 sounds very like georgetrio! (whatever happened to him?) No offense intended. :o)

2.10 now i think when plant starts 4.00 then on doubling plant who knows.

I still say farms around GTL will take a yearly set price year in year out rather than take a chance on the open market. IMO

harrycat i agree its strange why people comment with two accounts,
on the subject of corn, they'll eventually gain EOS in their buying and could possibly grow there own like D1.

and yes cynic i know there different crops etc

Yes prices are rising but that is supply and demand. The higher the price goes the more people will start growing it and hence price comes down. I am not so concerned about the price of corn right now - unless of course something drastic happens like a big drought, pestilence etc.

lets face it - they wouldn't be doing it if they thought they wouldn't make money...