SOURCE: Michigan Milk Producers Association
May 26, 2023
BY Michigan Milk Producers Association
Michigan Milk Producers Association and Canadian Dairy Distillery announced a joint initiative that will transform a dairy byproduct into the world’s lowest carbon-intensity ethanol, adding to the biofuel supply for cars and trucks.
Ontario-based Dairy Distillery developed technology to transform a lactose-rich dairy byproduct, called milk permeate into vodka, aptly named Vodkow. This high value use of milk permeate caught the attention of MMPA whose Constantine, MI facility produces 14,000 metric tons a year that’s being used for animal feed. Looking to create more value for its dairy farmer members, MMPA partnered with Dairy Distillery to build a plant to process its milk permeate into 2.2 million gallons of ethanol. When blended with transportation fuel, the permeate ethanol will offset 14,500 metric tons of carbon a year. This offset will reduce the carbon footprint of the milk processed at Constantine by 5% percent.
Advertisement
“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 make a significant contribution to MMPA’s net zero carbon emissions goal.” explains Dairy Distillery CEO Omid McDonald.
Ethanol production at the $41 million ethanol plant is planned for early 2025. The project received $2.5 million in funding from the Michigan Strategic Fund, showing the state’s commitment to the future of clean energy.
Advertisement
“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.”
“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,” said 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.”
More information about this project is available in this video about the project: https://vimeo.com/691542619/9b32ba2402.
The Michigan Advanced Biofuels Coalition and Green Marine are partnering to accelerating adoption of sustainable biofuels to improve air quality and reduce GHG emissions in Michigan and across the Great Lakes and St. Lawrence Seaway.
The USDA reduced its outlook for 2024-’25 soybean oil use in biofuel production in its latest World Agricultural Supply and Demand Estimates report, released April 10. The outlook for soybean oil pricing was revised up.
The U.S. Energy Information Administration reduced its 2025 forecasts for renewable diesel and biodiesel in its latest Short-Term Energy Outlook, released April 10. The outlook for “other biofuel” production, which includes SAF, was raised.
FutureFuel Corp. on March 26 announced the restart of its 59 MMgy biodiesel plant in Batesville, Arkansas. The company’s annual report, released April 4, indicates biodiesel production was down 24% last year when compared to 2023.
Neste has started producing SAF at its renewable products refinery in Rotterdam. The refinery has been modified to enable Neste to produce up to 500,000 tons of SAF per year. Neste’s global SAF production capacity is now 1.5 million tons.