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/

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

It is a viable alternative when Governments legislate that it has to be used.

Has it not already partly been legislated in the US?
Of course the era has begun, it started a year ago but now we are seeing the actual implementation which is exicting. Down over %4 today, is that just plain volatilty like with DOO/BFC etc?

GDP - 0.10p is scarcely a movement let alone volatility!

Haven't posted anything for a long while now, so I thought I'd just throw a spanner into the Oil (at $10) versus Ethanol argument (previous posts).

What nobody seems to be mentioning (or appreciating) is that oil is not just used as a fuel for your car. There are all the plastics and medical industries to consider (and more!). In general, these industries can only produce their wares from the derivatives obtained from distilling crude oil. They can't produce the same distillates from ethanol. So there will always be a demand for oil in applications where the substitution to ethanol does not work. This will keep the oil price high.

For the record, I have been an investor in GTL since August 2003 and will remain so forthe long term. I see this company as a good pension investment.

IMHO etc.

COME ON ENGLAND

Senator Hilary Clinton's Views on future ethanol use, reported at below web address:

http://www.cbsnews.com/stories/2006/05/23/ap/politics/mainD8HPO2G80.shtml

There are umpteen news articles on proposed and actual ethanol use on the web using a google search:

Here is an extract from one:

Iowa Senator Tom Harkin and Indiana Senator Evan Bayh introduced Senate legislation to establish a renewable fuels standard last year. That proposal would require oil refiners to blend at least eight billion gallons of ethanol and biodiesel ethanol per year into motor vehicle fuels by 2012 -- more than doubling current levels.

Harkin announced plans to introduce more bills in Congress to promote ethanol use and production in the U.S. Currently in the U.S., about 97 percent of transportation fuel comes from oil with nearly two thirds of it imported from foreign sources.

"I think we want to be very aggressive," Harkin said to reporters as he announced his plan June 1. "There's no question, this is very doable."

Harkin's newly proposed legislation includes three major parts:

* Establishing a renewable fuels standard to produce 60 billion gallons of ethanol by 2030.

* Requiring large oil companies to install E-85 pumps -- 85 percent ethanol and 15 percent oil -- at a certain percentage of stations they own.

* Directing automakers to gradually increase flex-fuel vehicle production.

Many of the Midwestern states are taking the lead on ethanol production. Iowa Governor Tom Vilsack signed a bill into law May 31 that is touted as being the most aggressive renewable fuels legislation in the country. Iowa, the country's largest corn producer, is considered one of the largest ethanol producing states according to the National Ethanol Vehicle Coalition.

Government tests show ethanol burns cleaner than gasoline. Ethanol supporters claim the fuel alternative is a completely renewable, domestic, environmentally friendly fuel that could dramatically enhance the nation's economy and energy independence.

Some states have taken ethanol production and its use a step further. Five gas stations along the I-35 interstate from San Antonio to Waco, Texas, are offering E-85.

The whole article can be found at:

http://www.dcmilitary.com/navy/journal/11_12/features/41810-1.html

GTL's Ethanol Plant is in Rochelle, Illinois, which is in between Iowa & Indiana and in the middle of the Mid-West states as cited in the above article (post #69), which is smack bang in the middle of the driving forces for change regarding the use of Ethanol.

StarFrog
Good to have you on board.

Cynic 0.10p is quite considerable when a share is worth 2p.