Company GTL Resources PLC
TIDM GTL
Headline Gains Australian Funding
Released 07:00 9 Oct 2003
Number 6894Q






RNS Number:6894Q
GTL Resources PLC
09 October 2003

Immediate Release: 07.00am 9 October 2003

GTL Resources PLC ("GTL")

GTL gains Australian Government infrastructure funding of A$35.4 million


The Chairman of GTL Resources PLC has today confirmed the company will proceed
to finalise the construction and financing of a 1million tonne p.a. methanol
plant on the Burrup Peninsula in regional Western Australia.


The decision was confirmed following an offer from the Australian Government to
provide support for vital common use infrastructure for the region. The value of
this investment incentive is up to A$35.4million and is subject to final
documentation.


The GTL project value is in excess of A$700million and will create 600 jobs
during construction and 85 once operational.


"Today marks a new beginning for the Australian methanol industry," said
Chairman, Mr Peter Middleton.


"This project is the primary focus for GTL. It is the right size for Australia
and the right size for the international market," said Mr Middleton.


The company has secured a 15-year sales agreement for 100% of the output.


Australia is uniquely placed to develop methanol with strong reserves of natural
gas and proximity to large markets in Asia.


Construction is expected to begin in Q1 2004. Once operational, the GTL project
is expected to be in the top ten exporters from Western Australia.


GTL is grateful for the support of the Federal Agency, Invest Australia, and the
Western Australian Government in the process to date.


GTL will continue to work closely with both the Federal and State Governments in
delivering this project.

For further information:


London:

GTL Resources PLC
Peter Middleton, Chairman +44 (0)20 7493 3393

Buchanan Communications
Tim Thompson / Catherine Miles +44 (0)20 7466 5000


Australia:


Parker & Partners Public Affairs
Melissa Cheesman +61 (0)414 254 717


Notes to Editor:


GTL Resources plc:


The name GTL Resources plc (GTL) reflects the Company's core activity, which is
the application of technologies for the conversion of stranded natural gas into
marketable liquid products. Gas to Liquids...G-T-L.


GTL Resources plc is a publicly listed company on the Alternative Investment
Market of the London Stock Exchange.


GTL is the sponsor of the project and has created two subsidiary companies
registered in Australia, GTL Holdings Australia Pty Limited, from which the
equity portion of financing will be derived and Liquigaz Pty Ltd, the company
which will manage the project.


Gas to liquids and methanol:


Gas to Liquids is a term encompassing a number of processes, whereby gas
previously without a market can be exploited as a liquid thus creating
commercial value. In our case we are talking about converting gas into methanol.


Australia has the necessary requirements to support the development of a Gas to
Liquids industry; large gas resources, easy access to potential markets and a
low level of country risk.


Methanol is a clear, colourless liquid, a basic chemical building block used to
produce formaldehyde, acetic acid and a variety of other chemical
intermediaries. Methanol is also widely used to make MTBE (methyl tertiary butyl
ether) an additive used in cleaner-burning gasoline. It is used in the
production of plastics and as such has the potential to spawn a plastics
industry.


Methanol is produced from natural gas through a process of steam reforming,
synthesis and distillation.


The project:


The aim of the project is to construct a plant just north of Withnell Bay,
Dampier Western Australia capable of converting stranded gas into methanol. The
plant will be capable of producing approximately one million tonnes of methanol
per year for sale within the Asia market, the fastest growing methanol market in
the world.


The key facts on the project are:


Construction of a A$700million plus, 3,000 tonne/day methanol plant at
Dampier on the Burrup Peninsula, WA;
Production and exports of 1million tonnes per annum valued up to
A$350million;
600 jobs during construction and 85 once operational; and an
Off-take agreement in place already for 100% of the product for 15 years.


This information is provided by RNS
The company news service from the London Stock Exchange

S/DOG,tried to take up o/offer today,but told by s/broker o/offer only available to u.k. residents, therefore o/offer appears to be very restrictive, i have abig holding but res. in ROI. My av. down to 2.9 before o/offer.

money left my sipp today and new shares will be in my account on friday

p+f target for GTL is 5 at the moment

news today

GTL Resources plc ('GTL' or the 'Company') was notified on 7 September 2005 by
British Coal Staff Superannuation Scheme that it is interested in 134,699,071
shares. This represents 5.9 per cent. of the issued share capital of the
Company.

Appears to be 2 seperate RNS,are they the one and same wrt.134m. shares bought,any views Snip

anybody got any thoughts on the recent volume of trades the last few days

A bit late in answering your question dubreekie but my guess is that the increase over the last few days is down to Bush's State of the Union address in which he stated that American society is adicted to oil and too dependant on it and that it was about time that they started to look for alternative energy sources. The president cited Ethanol and Methanol as alternatives to oil and hinted that the US would start actively encouraging the development of industries that produce these fuel alternatives.

Now guess what. GTL are busy developing a huge Ethanol production plant in the US (and have been for some months):

"On 6 September 2005, GTL Resources acquired a controlling interest in Illinois River Energy to build an Ethanol plant at Rochelle Illinois. Construction of the plant commenced on 12 September 2005. It is expected that Ethanol will start being produced in Q4 2006. The site is in a prime location in respect of corn supply and Ethanol marketing.

The companys objective is to benefit from the USA governments legislation of August 2005 that renewable fuel consumption must double to 7.5 billion gallons per annum by 2012."

I've held these boys since Q3 2003, buying in at nearly 11p, and have regularlly bought in on dips to lower my zero return price (I know this goes against the first and second rules of trading, chocolat ;-) but rules are there to be broken!). I'm holding on ethical grounds and for a long term investment. I am up 21% overall already though. Whoopee!

Just in small profit,passed b/e s.p.2.9,right on-starfrog.

Fantastic day up 6 %
does anybody have any news/following this share

thanks
lindos

news is i bought at 10p oVer 2 year ago,giVe me a call in another 7p thanks.

Plant update available at http://www.gtlresources.com/ethanol_projects.htm

Good too see weather has not hindered progress. Roll on Q4

Oily

Now is the time to av. down,lower b/e s.p., hurry Cellby.

whats with todays big buys? two times 5 million seperate trades.

more big trades again today. SP heading north. hmmmm

Taken from ADVFN

mentioned as top tip in FT.com today...link

At the bottom of the page as top tip.

http://news.ft.com/cms/s/f4476108-cc1b-11da-a7bf-0000779e2340.html

Bought into these today after dumping mdy looks like good prospects for the future also an FT tip.

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. We bought at 1.25p. They are now around 3.25p.

New ethanol plant due to be completed in q4/06, also talk of doubling plant size,big issue in usa,great future, right on driver.

huge buy volumes over the last few days!

If youve had a good day please consider giving a donation to the lads dressed as Elvis racing 350 miles to the North Pole on behalf of Great Ormond Street Hospital It makes the London Marathon seem like a stroll in the park!
To donate or view how theyre getting on visit
http://www.elvispolarchallenge.co.uk/
thanks for your time

Cellulosic ethanol will eventualy reduce costs

From Business Week Europe on Yahoo! Finance ...............

Friday May 19, 01:23 PM
Ethanol: Myths and Realities
By Alex Halperin

With high gas prices making alternative fuels increasingly attractive, no alternative fuel has received as much attention as ethanol. Some hail the fuel, which can be derived from plants including corn, wheat, barley and sugarcane, as a savior of American Advertisement policy, while others see it as a fad popularized by its heavily subsidized corporate backers.

The reality is complex. Though still a tiny industry compared to gas, ethanol could become a more prominent part of the U.S. and world fuel supply in coming years.

Still, as ethanol's public profile rises, there's plenty of misinformation swirling around and a host of questions. What exactly is ethanol? How is it made and used? And is it really a viable alternative to gas? Here's what you need to know now.

What exactly is ethanol?

The fuel is derived from plants through a fairly straightforward process. In one common method Corn, is first ground into a fine powder, mixed with water, and then heated. An enzyme is then added to convert the mixture into sugars before yeast is added to ferment it. The resulting liquid, called "beer," is about 10% alcohol. A distillation process then separates the alcohol from the rest of the mixture before the remaining water is removed. The result is essentially pure alcohol. A small amount of gas is added to render the liquid undrinkable. Then the fuel can be used by itself or as a supplement to gasoline to power cars.

Ethanol has three advantages, at least in theory: It's renewable, it can be domestically produced, and it burns cleaner than gas. The world's largest producers of ethanol are the U.S., which makes it primarily from corn, and Brazil, which mashes the stuff out of sugarcane.

Beyond high gas prices, why is everyone talking about ethanol?

It's becoming an increasingly important part of the fuel supply, and has the potential to become still more crucial. President George W. Bush and members of Congress have expressed support for ethanol use. And this spring, refiners in parts of Texas and the Northeast have been replacing a gasoline additive called MTBE [for methyl tertiary-butyl ether] with ethanol. MTBE, a chemical used to oxygenate fuel, can contaminate drinking water. And Ethanol which does not present the same danger, can serve the same purpose in fuel.

That's not all. The 2005 energy bill requires that the U.S. boost its ethanol production to 7.5 billion gallons by 2012, up from about 4 billion in 2005. This sounds like a whole lot of ethanol, but bear in mind, last year the U.S. slurped up almost 140 billion gallons of gas.

Are there any problems with ethanol?

Oh, yes. Ethanol can't travel in pipelines along with gasoline, because it picks up excess water and impurities. As a result, ethanol needs to be transported by trucks, trains, or barges, which is more expensive and complicated than sending it down a pipeline. As refiners switched to ethanol this spring, the change in transport needs has likely contributed to the rise in gas prices. Some experts argue that the U. S. doesn't have adequate infrastructure for wide ethanol use.

Also, ethanol contains less energy than gas. That means drivers have to make more frequent trips to the pump.

Doesn't producing ethanol on a large scale use a great deal of energy?

Yes. Some ethanol skeptics have even argued that the process involved in growing grain and then transforming it into ethanol requires more energy from fossil fuels than ethanol generates. In other words, they say the whole movement is a farce.

There's no absolute consensus in the scientific community, but that argument is losing strength. Michael Wang, a scientist at the Energy Dept.-funded Argonne National Laboratory for Transportation Research, says "The energy used for each unit of ethanol produced has been reduced by about half [since 1980]." Now, Wang says, the delivery of 1 million British thermal units [BTUs] of ethanol uses 0.74 million BTUs of fossil fuels. [That does not include the solar energy -- the sun shining -- used in growing corn.] By contrast, he finds that the delivery of 1 million BTUs of gasoline requires 1.23 million BTU of fossil fuels.

Producing ethanol could get more efficient soon as new technologies help farmers get more corn per acre of land and allow ethanol producers to get more of the fuel from the same amount of corn. The companies developing new corn technologies include chemical giant Dupont (DD) and Monsanto (MON), which sells genetically modified seeds as well as chemicals for protecting crops.

So where can I find ethanol?

There's a good chance you're using it already. It's mixed into gas in many regions of the country including the corn-belt Midwest, and states like California and New York which had already banned MTBE. The regions making the transition this spring are the Northeast and parts of Texas.

Cars in the U.S. can normally drive on E10, a mixture of 10% ethanol and 90% gasoline, that is sometimes called gasohol. It's how Americans usually take their ethanol. Relatively few cars available here are "flex-fuel," meaning that they can run on much higher concentrations of ethanol. The fuel E85, which is 85% ethanol, is sold at some gas stations concentrated in the Midwest.

Is ethanol cheaper than gas?

Surprise, surprise, it isn't. The move this spring by more regions to use ethanol means that demand has spiked, driving up prices. On Monday, the New York harbor price was around $3 per gallon compared with about $2.28 for gasoline [before being mixed with ethanol]. In other words, for now ethanol is helping to increase prices at the pump, not to push them down.

So ethanol production and distribution are also controlled by market forces, right?

Only to a certain degree. In addition to heavily subsidizing the ethanol produced domestically, the U.S. government levies a 54 cent per gallon tariff on imports from other countries, such as Brazil, a lower-cost producer. This, of course, discourages the U.S. from importing cheaper ethanol.

Why not eliminate the tariffs?

Well, the idea behind the tariffs is to foster domestic production of ethanol. But amid the ongoing furor over high gas prices the idea of repealing the levy has gained momentum in Washington. Though it would probably annoy ethanol producers like agricultural giant Archer Daniels Midland (NYSE: ADM - news) (ADM), removing the tariffs could have some benefits. It would help ease price pressures and would likely encourage Brazil to boost its ethanol production. However, it's probably not a short-term solution.

Brazil is undergoing an ethanol revolution far more drastic than that in the U.S. Flex-fuel cars which can run solely on ethanol are widely available and the ethanol supply is short enough that the government recently reduced the mandatory ethanol content in gasoline from 25% to 20%.

"Brazil is the model" for how ethanol can be brought into use, wrote Citigroup (NYSE: C - news) (C) analyst P. J. Juvekar in a recent report. But while buying ethanol from Brazil could be useful in the future, it's not going to reduce the pain of a road trip this summer.

What companies stand to benefit from increased ethanol use?

There is a crop of American ethanol producers. ADM is by far the largest, pumping out about one-quarter of the U.S. total. MGP Ingredients is one of the many smaller companies involved. Verasun Energy and Aventine Renewable Energy, two other producers of note, have recently filed to go public.

What can we expect to change in the future?

At present commercial corn-based ethanol comes from corn kernels. One of the more exciting ethanol prospects on the horizon is cellulosic ethanol, which can be made from a number of plant by-products, including cornstalks. Although it's unlikely to be commercially available for at least a few years, cellulosic ethanol eventually could help substantially reduce costs. In other words, your car in the future could run on the refuse of farms across the U.S.