Teesfirm’s Plant Project on Target

By Karen Mclauchlan

A multi-million pound biofuel energy plant being built by a Yarm company State-side is set to be up and running within 12 months.

Teesside gas company GTL Resources is behind the $79m (pounds 45m) ethanol plant project, being built in Rochelle, Illinois.

In a company update, bosses said construction had now started on the project and production from the 50m gallon-a-year site was due to start in the fourth quarter of 2006.

But GTL added it was already hoping to double production at the site.

Peter Middleton, chairman of the group, said: “Whilst the company’s main efforts centre on the successful delivery of the US ethanol project in Rochelle, the potential expansion of that site to 100m gallons is being investigated.

“Other ethanol opportunities have also been identified and will be analysed.”

Ethanol is a renewable biofuel which can be blended for use in cars and reduces carbon emissions. The facility will process corn to produce ethanol.

Mr Middleton, who was the former chairman of Tees Valley Regeneration, added: “Following unusually mild weather in Illinois the project has progressed well and is on schedule and on budget.”

Reporting its half year results GTL said it had made a pounds 1.4m loss in the six months to September 30 – which was in line with its expectations.

Mr Middleton added: “The company has taken a significant step forward with the fundraising and commencement of its first major project.

“It is not expected to generate profits until the new plant begins production.”

Earlier this year GTL completed a takeover of a US firm to push forward the ethanol plant plans.

The company, which employs seven locally, announced in June it was in talks to buy a controlling interest in Illinois River Energy (IRE). It completed the deal in August.

GTL is also behind plans for a methanol plant project in Australia.

Mr Middleton said: “The company’s Australian methanol interests have been maintained. The project remains on hold pending the availability of a suitable gas supply and strengthening of the US dollar relative to the Australian dollar.”