America’s lowest carbon-intensity dairy ethanol plant breaks ground in southwest Michigan, adding to the needed biofuel supply and helping lower the dairy industry’s carbon footprint.
CONSTANTINE, Mich. – The Michigan Milk Producers Association (MMPA) and Canadian Dairy Distillery celebrated the groundbreaking of their innovative $41 million ethanol plant in Constantine, Michigan. The event featured remarks from key figures including MMPA Board Chairman Doug Chapin, MMPA President and CEO Joe Diglio, and Dairy Distillery CEO Omid McDonald.
“I’ve been inspired by MMPA dairy farmers and their commitment to sustainability,” Dairy Distillery CEO Omid McDonald said. “Our partnership with MMPA represents a groundbreaking innovation in the dairy sector. Utilizing milk permeate to produce low carbon ethanol is an innovative solution to reduce carbon footprint and provide dairy farmers more value from their milk.”
As a result of their partnership, the new facility will transform 14,000 tons of milk permeate, a dairy byproduct, into 2.2 million gallons of ethanol annually. When blended with transportation fuel, the permeate ethanol will offset 14,500 tons of carbon a year, equivalent to 5% of carbon footprint of the milk processed at Constantine.
“The Dairy Distillery Alliance marks a significant step forward in our sustainability journey. By transforming milk permeate into ethanol, we are not only reducing waste but also contributing to a cleaner environment,” MMPA President & CEO Joe Diglio said. “This project highlights our commitment to innovation and sustainable practices within the dairy industry. It’s a testament to the dedication of our members and partners in striving for a sustainable future. We are proud to lead this initiative that benefits the communities we all work and live in.”
The project received $2.5 million in funding from the Michigan Strategic Fund, showing the state’s commitment to the future of clean energy. Lending partners for this renewable energy project include Pathward®, N.A. and CoBank.
“Pathward is committed to promoting environmental stewardship and contributing to community development. One way the company does that is by financing renewable energy projects like the one breaking ground today,” according to David Menoian, Pathward Senior Managing Director, Business Development.
“CoBank is excited to be involved in today’s event and recognizes the growing demand for renewable energy solutions across rural America,” said Mike Minnihan, CoBank Vice President, Lead Relationship Manager.
Ethanol production at the plant is planned for 2025. The Dairy Distillery Alliance was initially announced last spring, marking the beginning of this groundbreaking partnership.
“The efforts at Michigan Milk Producers Association and Dairy Distillery in Constantine, Mich. are a prime example of how innovation and partnership and collaboration can meet the important needs of expanding producer economic opportunities, providing a value-added product, and addressing the need for low carbon renewable fuels,” said John Berge, Acting Deputy Administrator, United States Department of Agriculture (USDA), Farm Services Agency. “The investment that USDA made through the Inflation Reduction Act will result in those important outcomes for Michigan dairy producers. We are proud of that and hope this becomes the first of many of these types of projects.”
About the Michigan Milk Producers Association
The Michigan Milk Producers Association (MMPA) is a member-owned and operated milk marketing cooperative known for producing high-quality, award-winning dairy products. Established in 1916, MMPA is the 10th largest U.S. dairy farmer-owned cooperative serving members in Michigan, Ohio, Indiana, and Wisconsin. At MMPA, commitment to milk quality begins on the farm and extends through all four of their SQF version 9.0 certified processing facilities: a cheese plant in Indiana, a dairy product plant in Ohio and two dairy ingredient plants in Michigan.
About Dairy Distillery
Dairy Distillery develops technology to transform a lactose-rich dairy by-product into sustainable alcohol used to make award-winning spirits (Vodkow) and hand sanitizer. The company is working to build a large-scale ethanol plant to lower the carbon footprint of transportation fuel. Dairy Distillery is based in the idyllic town of Almonte, Ontario, Canada where it operates a state-of-the-art distillery.
