(25/04/07) Permit Award Update

Permit Approval and Construction Contract Finalised For Plant Expansion  

GTL Resources plc (AIM:GTL), the project development company focused on ethanol production in the US, today provides an update on progress of its plant expansion plans at Rochelle, Illinois. 

As previously announced, subject to funding, construction of the proposed expansion is expected to begin in the third quarter 2007.

Air Permit

 lllinois River Energy LLC ("IRE"), the owner and operator of the ethanol plant at Rochelle and in which GTL has a controlling 85% interest, has received from the Illinois Environmental Protection Agency the air permit for the expansion of its existing ethanol plant at Rochelle, from 50 million gallons per annum ("mgpa") nameplate to 100 mgpa nameplate.

Construction Contract Terms

 IRE has also agreed in principle the terms of a Design Build Agreement with Fagen Inc ("Fagen") for the construction of the plant expansion. Signing of the contract is expected shortly.  Following signature of the contract, IRE will have a right, exercisable within a specified period, to proceed with the construction work at an agreed capital cost.

The existing 50 mgpa plant, which has been operating since 27 December 2006 and was completed on time and to budget, was also built under a contract with Fagen.

Grant Received

 lRE has recently received $2m from the State of Illinois Department of Commerce and Economic Opportunity as the penultimate installment of a $5.5m grant (of which $0.2m remains outstanding) under their program to promote the construction of ethanol plants in Illinois.

 Peter Middleton, GTL's Chairman and CEO, said

 "We are delighted to report the receipt of the air permit required for the expansion of the plant to 100 million gallons, as well as the finalisation of the principal terms of the construction contract for the expansion. Our discussions with potential lending banks are now well-advanced and I am encouraged at the progress that is being made."

 

For further information, please contact: 

GTL Resources plc

Peter Middleton, Executive Chairman                Tel: 020 7958 1685

Michael Brennan, Finance Director                    Tel: 01642 794 000 

Buchanan Communications                               Tel: 020 7466 5000 Charles Ryland/Nick Melson 

 

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