Dairy Distillery, MMPA launch partnership for innovative ethanol production facility

CANADA – Ontario-based Dairy Distillery has teamed up with the Michigan Milk Producers Association (MMPA) to initiate an ethanol production facility in Constantine, Michigan.

The state-of-the-art plant, a US$41 million investment, is scheduled to begin operations in 2025. It will transform 14,000 tons of milk permeate, a byproduct of dairy production, into 2.2 million gallons of low-carbon ethanol annually.

According to Omid McDonald, CEO of Dairy Distillery, the process not only addresses waste reduction but also enhances the economic value of dairy farming by creating an additional revenue stream from a previously underutilized byproduct.

“By converting milk permeate into low-carbon ethanol, we are delivering a cutting-edge solution that reduces the carbon footprint of dairy farming while simultaneously increasing the value proposition for farmers,” he said.

In addition, Joe Diglio, President and CEO of MMPA, emphasized that the initiative represents a significant advancement in our commitment to sustainability, providing a tangible benefit to both the environment and the dairy producers.

The collaboration was inspired by Dairy Distillery’s innovative technology developed in Ontario to transform lactose-rich milk permeate into Vodkow, a vodka product.

The success of this high-value use of milk permeate attracted MMPA, whose Constantine facility produces 14,000 tons of milk permeate annually, traditionally used for animal feed.

Seeking to create more value for its dairy farmer members, MMPA partnered with Dairy Distillery to establish a plant that will process milk permeate into 2.2 million gallons of ethanol.

When blended with transportation fuel, this ethanol will offset 14,500 tons of carbon annually, reducing the carbon footprint of the milk processed at Constantine by 5%.

“I’ve been inspired by MMPA dairy farmers and their commitment to sustainability. Using a milk byproduct to reduce the carbon footprint of dairy is an innovation that will significantly contribute to MMPA’s net zero carbon emissions goal,” Omid McDonald stated.

Ethanol production at the US$41 million facility is planned to start in early 2025. The project has also received US$2.5 million in funding from the Michigan Strategic Fund, underscoring the state’s commitment to clean energy and sustainable practices.