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/

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...

gbrown , you are absolutely correct , i am sure a lot of farmers are already thinking of planting - i posted as i had been watching the price of corn and short term it may be difficult to make money

maddoctor
Who are you talking about the farmers or the ethanol producers stop winging about the price of corn I have said this before the price of corn has a limit they are not going to cut of the hand that feeds it.

farmers do not set the price of corn; the market does

driver , i am surprised at your response , i would have thought people involved with this stock would be interested in the price of corn! seems not.

Good arguement for GM crops. If it's not for human or animal consumption, who cares how it has been modified?

Harry ... sorry, but a total non seq .... who says GM crops are not suitable for either human or animal consumption anyway

maddoctor
Of coarse we are interested in the price of corn but not overly interested that it effects our investment judgement may be the corn price will have an effect on GTL may be not the plant isnt even built yet lets see the revenue and profits before we can be the judge of the corn price effect.

October Corn Prices

http://www.agriculture.state.ia.us/grainhistory/octcorn2006.html

How High Can Ethanol Demand Drive Up The Price Of Corn?

http://www.farmgate.uiuc.edu/archive/2006/11/how_high_can_et.html

the plant should start up in dec.gtl will have a fixed price on corn with the farms thay will grow corn for gtl at this fixed price. dont panic about corn prices.

New Pictures November 7, 2006

Boiler Stack Installation and Grain Elevator Erection

not be long now, could be news soon.