Welcome to GTL Resources
IRE PERFORMANCE UPDATE
For start of August pictures and update of expansion project see Ethanol Projects
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The strategy of GTL Resources plc is to produce ethanol from corn and other feedstock's 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, since the beginning of 2005 has concentrated primarily on ethanol. In the past the company followed a methanol strategy but in late 2004 the Board 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 an 85% 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.
In December 2006 the IRE Plant commenced production on time and on budget. In July 2007 the Group raised further funds to finance the expansion of the IRE facility from 50 million gallons per annum (mgpa) to 100 mgpa.
The Company intends to further expand within the ethanol industry in the United States or other suitable markets by selective development of low cost production facilities. The Company sees itself as a potential consolidator of ethanol plants in a very fragmented market. Given the potential of the biofuels sector the company's strategy no longer includes methanol projects.
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