Michigan's New $41M Facility to Convert Milk Byproduct into Ethanol

Michigan Milk Producers Association (MMPA) and Canadian Dairy Distillery today broke ground on a $41 million ethanol plant in Constantine, Michigan. Key stakeholders, including MMPA leadership and government officials, gathered to celebrate this milestone. The facility will transform a dairy byproduct into a low-carbon ethanol fuel, demonstrating a commitment to sustainability and economic growth for the region.

The new facility will convert 14,000 tons of milk permeate, a byproduct of dairy processing, into 2.2 million gallons of ethanol each year. This ethanol, when blended with transportation fuels, is expected to reduce carbon emissions by 14,500 tons annually. This reduction represents 5% of the carbon footprint associated with the milk processed at Constantine, significantly contributing to environmental sustainability and demonstrating the facility's commitment to reducing its carbon impact through innovative waste-to-energy solutions.

Dairy Distillery CEO Omid McDonald expressed admiration for MMPA dairy farmers and their dedication to sustainability. He highlighted their partnership as a pioneering step in the dairy industry, emphasizing the innovative approach of using milk permeate to produce low carbon ethanol. McDonald noted that this method not only helps in reducing the carbon footprint but also adds value to the milk produced by dairy farmers. This collaboration represents a significant advancement in creating more sustainable and environmentally friendly solutions within the dairy sector.

The project secured $2.5 million in funding from the Michigan Strategic Fund, underscoring the state’s strong commitment to advancing clean energy initiatives. This substantial financial support reflects Michigan's dedication to fostering sustainable energy solutions. Additionally, Pathward®, N.A. and CoBank are serving as key lending partners for the renewable energy project, providing crucial financial backing that will help drive its successful implementation. Together, these investments and partnerships highlight the growing support for innovative energy projects and the state’s proactive role in promoting a greener future.

MMPA President & CEO Joe Diglio highlighted the Dairy Distillery Alliance as a major advancement in their sustainability efforts. By converting milk permeate into ethanol, this initiative not only minimizes waste but also supports environmental sustainability. Diglio emphasized that this project showcases their commitment to innovation and eco-friendly practices in the dairy industry. He praised the dedication of their members and partners, asserting that the initiative reflects their collective efforts to foster a sustainable future. The alliance stands as a proud example of how their work benefits both the environment and the communities they serve.

Ethanol production at the plant is scheduled to commence in 2025. The Dairy Distillery Alliance, which was first announced last spring, represents the launch of this innovative partnership. This collaboration aims to transform dairy byproducts into ethanol, marking a significant step forward in sustainable production practices and highlighting the commitment of both parties to advancing clean energy solutions.