The Michigan Milk Producers Association and Dairy Distillery have launched a new ethanol plant in Constantine, Michigan, which will convert dairy byproducts into low-carbon fuel. This project aims to add value to dairy operations while contributing to environmental sustainability.


On August 6, 2024, the Michigan Milk Producers Association (MMPA) and Dairy Distillery launched a groundbreaking ethanol plant in Constantine, Michigan, designed to convert dairy byproducts into low-carbon fuel. MMPA, a prominent dairy cooperative based in Michigan, supports local dairy farmers through milk collection, processing, and distribution. Despite challenges like limited marketing opportunities, MMPA remains committed to enhancing dairy farming practices and the overall sustainability of the dairy sector.

Dairy Distillery, a Canadian company known for its innovative use of milk permeate to produce vodka, is now expanding its expertise into ethanol production. This collaboration with MMPA represents a significant step toward producing low-carbon fuels, aligning with broader environmental goals and the energy transition. The new plant will utilize dairy byproducts to create sustainable fuel, contributing to both the dairy industry’s profitability and environmental sustainability.

Project Overview

The new facility represents a significant step forward in sustainable energy. The plant will process 14,000 tons of milk permeate annually to produce 2.2 million gallons of ethanol. This initiative aligns with MMPA’s mission to add value for its members while contributing positively to environmental sustainability by generating low-carbon fuel. The ethanol produced will be used for both road transportation and as a feedstock for aviation fuel.

Motivation and Development

The idea for converting milk permeate into ethanol emerged from MMPA’s desire to enhance the value of dairy byproducts. Originally, the association explored turning permeate into vodka but shifted focus due to the high volume of permeate generated. The installation of an ultrafiltration system at the Constantine facility to concentrate milk proteins and filter out lactose highlighted the need for a strategic solution for the resulting byproduct.

Dairy Distillery, a Canadian company known for its success in turning milk permeate into vodka under the brand name Vodkow, became a key partner in this project. This collaboration supports the broader energy transition, offering consumers low-carbon or carbon-neutral fuels at competitive prices. This mission is further supported by the Inflation Reduction Act.

Community and Environmental Impact

The new plant will incorporate an advanced wastewater system that converts processed waste into biogas and clean water, addressing environmental concerns and promoting sustainability. The plant’s design and operational plans are aimed at ensuring it serves as a positive addition to the local community in Constantine.

Financial and Support Contributions

Pathward, N.A. and CoBank have been instrumental in financing this green energy initiative. Their support underscores the importance of investing in sustainable energy projects despite inherent risks.

Government and Local Support

John Berge, acting deputy administrator of the USDA, praised the project’s innovative approach and its potential to broaden market availability while adding value to dairy products. Steve Carra, a State Representative for Michigan, commended the project for its cost-effectiveness and responsible approach to energy production. Nate Engle highlighted the job creation aspect and its contribution to sustainable energy and farming.

The ethanol plant in Constantine, Michigan, represents a significant advancement in dairy byproduct utilization and sustainable energy. The collaboration between MMPA and Dairy Distillery reflects a growing trend towards environmentally responsible practices in the dairy industry, offering new opportunities for both the local community and the broader market.

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