By Andi Anderson
The Dairy Distillery Alliance marked the start of their innovative $41 million ethanol plant project with a groundbreaking ceremony in Constantine, Michigan.
This plant, set to become America’s lowest carbon-intensity dairy ethanol facility, aims to enhance the biofuel supply and significantly lower the dairy industry’s carbon footprint. The event featured speeches from MMPA Board Chairman Doug Chapin, MMPA President and CEO Joe Diglio, and Dairy Distillery CEO Omid McDonald.
Dairy Distillery CEO Omid McDonald expressed his admiration for MMPA dairy farmers and their commitment to sustainability.
“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,” McDonald said.
The new facility will convert 14,000 tons of milk permeate, a dairy byproduct, into 2.2 million gallons of ethanol annually. When blended with transportation fuel, this ethanol will offset 14,500 tons of carbon each year, equating to 5% of the carbon footprint of the milk processed at Constantine.
MMPA President and CEO Joe Diglio highlighted the project's significance, stating, “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.
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.”
The project received $2.5 million in funding from the Michigan Strategic Fund, demonstrating the state's support for clean energy initiatives. Lending partners include Pathward®, N.A., and CoBank. David Menoian, Pathward Senior Managing Director of Business Development, stated, “Pathward is committed to promoting environmental stewardship and contributing to community development by financing renewable energy projects like the one breaking ground today.”
CoBank Vice President and Lead Relationship Manager Mike Minnihan added, “CoBank is excited to be involved in today’s event and recognizes the growing demand for renewable energy solutions across rural America.”
Ethanol production at the plant is expected to begin in 2025. The Dairy Distillery Alliance was initially announced last spring, marking the start of this innovative partnership.
John Berge, Acting Deputy Administrator of the USDA Farm Services Agency, commended the project, saying, “The efforts at Michigan Milk Producers Association and Dairy Distillery in Constantine, Mich. are a prime example of how innovation 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. 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 such projects.”
Photo Credit: vista-mipan
Categories: Michigan, Energy