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Michigan’s new $41M facility to convert milk byproduct into ethanol

The Michigan Milk Producers Association (MMPA) and Canadian Dairy Distillery have officially started construction on a $41 million ethanol plant in Constantine, Michigan. The groundbreaking ceremony was attended by key stakeholders, including MMPA leadership and government officials, who celebrated this significant milestone. The new facility will convert dairy byproducts into low-carbon ethanol fuel, underscoring a commitment to both sustainability and regional economic growth, reported Chemanalyst.

The plant will process 14,000 tons of milk permeate, a byproduct from dairy production, into 2.2 million gallons of ethanol annually. This ethanol, when blended with transportation fuels, is projected to cut carbon emissions by 14,500 tons each year. This reduction accounts for 5% of the carbon footprint linked to the milk processed in Constantine, reflecting a substantial contribution to environmental sustainability and showcasing the facility’s dedication to mitigating its carbon impact through innovative waste-to-energy methods.

Dairy Distillery CEO Omid McDonald praised MMPA dairy farmers for their commitment to sustainability, calling their partnership a groundbreaking initiative in the dairy industry. He highlighted the innovative use of milk permeate to produce low-carbon ethanol, which not only reduces the carbon footprint but also adds value to dairy products. McDonald described the collaboration as a major step toward more sustainable and environmentally friendly practices within the dairy sector.

The project has received $2.5 million in funding from the Michigan Strategic Fund, demonstrating the state’s strong support for advancing clean energy projects. This financial backing emphasizes Michigan’s dedication to fostering sustainable energy solutions. Additionally, Pathward®, N.A. and CoBank are providing essential financial support as key lending partners, further contributing to the project’s successful realization. These investments reflect growing support for innovative energy initiatives and Michigan’s proactive role in promoting a greener future.

MMPA President & CEO Joe Diglio praised the Dairy Distillery Alliance as a significant advancement in sustainability efforts. He noted that converting milk permeate into ethanol not only reduces waste but also supports environmental sustainability. Diglio highlighted the project as a testament to their commitment to innovation and eco-friendly practices in the dairy industry. He commended the dedication of their members and partners, asserting that the initiative exemplifies their shared commitment to a sustainable future and benefits both the environment and the communities they serve.

Ethanol production at the plant is expected to begin in 2025. Announced last spring, the Dairy Distillery Alliance represents the start of this innovative partnership, aimed at transforming dairy byproducts into ethanol and marking a significant advancement in sustainable production practices and clean energy solutions.

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