MMPA and Canadian Dairy Distillery to Build $41M Ethanol Plant

Michigan Milk Producers Association and Canadian Dairy Distillery Collaborate on $41 Million Ethanol Plant

Michigan Milk Producers Association (MMPA) and Canadian Dairy Distillery have initiated the construction of a cutting-edge ethanol plant in Constantine, Michigan. This state-of-the-art facility will revolutionize dairy production by converting 14,000 tons of milk permeate, a dairy byproduct, into 2.2 million gallons of ethanol annually, resulting in a substantial reduction of 14,500 tons of carbon emissions each year. The endeavor has garnered $2.5 million from the Michigan Strategic Fund and received financial backing from Pathward®, N.A. and CoBank. MMPA President & CEO Joe Diglio expressed overwhelming support for this monumental venture, emphasizing the pivotal role it plays in advancing sustainability, waste reduction, and eco-friendly practices. CEO Omid McDonald of Dairy Distillery underscored the innovative nature of the partnership and its role in leveraging milk permeate to produce low-carbon ethanol, thereby enhancing the value of dairy farmers' output. Set to commence ethanol production in 2025, this enterprise marks a substantial stride in sustainable dairy production and environmental conservation.

Key Takeaways

• MMPA and Canadian Dairy Distillery embark on a groundbreaking $41 million ethanol plant in Michigan.
• The plant will convert 14,000 tons of milk permeate into 2.2 million gallons of ethanol annually.
• Ethanol production at the plant is projected to curtail carbon emissions by 14,500 tons yearly.
• The project secures $2.5 million from the Michigan Strategic Fund for promoting clean energy.
• Ethanol production at the plant is scheduled to commence in 2025.

Analysis

The advent of the new ethanol plant by MMPA and Canadian Dairy Distillery heralds a transformative period for dairy farmers, as it embraces the sustainable utilization of milk permeate, thereby curbing waste and carbon emissions. This groundbreaking initiative has the potential to catalyze the adoption of similar sustainable practices across the dairy industry, prompting policy reforms and investments in eco-friendly technologies. Financial patrons such as Pathward®, N.A. and CoBank stand to gain from their investments as sustainability initiatives surge in popularity. In the short term, this initiative is expected to create employment opportunities and stimulate local economic growth, while in the long term, it is poised to foster broader environmental enhancements and industry evolution.

Did You Know?

• Milk Permeate:
  • Milk permeate is a residual byproduct of the dairy industry, remaining after the extraction of milk solids-not-fat and water during the production of milk powders and other dairy products.
  • Abounding in lactose, minerals, and vitamins, it is conventionally utilized as an economical component in animal feed, or it is disposed of, posing environmental risks.
• Ethanol Production from Dairy Byproducts:
  • The conversion of milk permeate into ethanol represents a groundbreaking approach to harnessing a dairy byproduct that would otherwise go to waste or have limited applicability.
  • The process involves fermenting lactose, the primary sugar in milk permeate, to yield ethanol, which can be utilized as a biofuel, thus reducing dependency on fossil fuels and diminishing greenhouse gas emissions.
• Michigan Strategic Fund:
  • The Michigan Strategic Fund is a public entity that extends financial and other forms of assistance to projects aimed at stimulating economic development, job creation, and bolstering the state's economic competitiveness.
  • In this context, the fund has allocated $2.5 million to support the construction of the ethanol plant, underscoring its pivotal role in promoting initiatives for clean energy and sustainable practices within Michigan's industries.