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Area Development - Site Selection, Facility Planning and Workforce Development

Dairy Distillery Alliance Plans Constantine, Michigan, Milk Permeate Ethanol Plant

05/24/2023
Canada-based Dairy Distillery Alliance, a joint venture between Michigan Milk Producers Association and Canada-based Dairy Distillery USA, plans to build a milk permeate ethanol plant at the MMPA Constantine dairy facility in Constantine, Michigan. The $41.1 million project is expected to create twelve jobs.

The facility will use Constantine’s milk permeate to produce 2.2 million gallons of low carbon ethanol. The investment includes a new, state-of-the-art wastewater treatment system that will produce natural gas to power the ethanol plant’s distillation system, further lowering the carbon footprint of the milk permeate ethanol. Production is scheduled for early 2025.

“Constructing an ethanol-processing plant at the Constantine facility compliments our focus on sustainability and provides a progressive, unique opportunity to utilize new technologies that add value to our current processing operations while further diversifying the markets we currently serve,” MMPA President and CEO Joe Diglio said. “It’s exciting to see innovative solutions such as this facility, which lead to growth and success for our members, employees, stakeholders and our communities.”

The Michigan Strategic Fund approved a $2 million Michigan Business Development Program performance-based grant and a 15-year State Essential Services Assessment exemption valued at $682,500 in support of the project.

In addition, the village of Constantine anticipates approval of a property tax abatement in support of the project. The Michigan Economic Development Corporation (MEDC) also authorized a State Education Tax abatement to be used in conjunction with the locally approved abatement.

“The decision by Dairy Distillers to establish this state-of-the-art facility in Michigan highlights the strength of our agribusiness ecosystem and further demonstrates Team Michigan’s commitment to delivering long-term economic growth for all Michiganders,” noted MEDC Chief Operating and Customer Experience Officer Jennifer Nelson. “This project is a win for our agriculture industry, our dairy farmers and our entire state. We are grateful to the Governor, legislators of both parties and local officials for their continued support of our efforts.?These projects reflect our commitment to ensuring that Michigan becomes an even better place for each of our 10 million-plus friends and neighbors to live, work, visit, play, and create futures. Work remains ahead, yet we are grateful for the vote of confidence that continues to be shown in Team Michigan’s economic environment.”

Dairy Distillery has developed technology to transform milk permeate, a byproduct of milk and other dairy processing, into ethanol.

“Projects like these are a prime example of the diversity and strength of our dairy industry and demonstrates the Whitmer Administration’s commitment to growing agriculture businesses in Michigan,” added Tim Boring, director, Michigan Department of Agriculture and Rural Development. “In 2022, MDARD provided a $100,000 Value-Added Grant to the Michigan Milk Producers Association and Dairy Distillery in this first of its kind venture. The department is proud to support business expansion with multi-pronged benefits – creates good-paying local jobs; opens up new markets for Michigan’s farmers to continue to thrive; lowers carbon footprints; and reduces the overall waste stream. I hope this serves as a model for others into the future.”

Michigan Milk Producers Association (MMPA) is a farmer-owned cooperative that includes more than 1,000 dairy farmers in the Great Lakes Region and has two facilities in Michigan.

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