A nearly old as time process that begins with fermentation, is going to help cows reach the sky. What started as a solution to upcycle milk permeate, a byproduct of the ultrafiltration process, became an answer to improving dairy farmer’s economics and contributing to the dairy industry’s sustainability goals. The unique solution was the result of an unlikely partnership between a Canadian-based vodka company, Dairy Distillery, and America’s 10th largest dairy cooperative, the Michigan Milk Producers Association (MMPA).
“At the time when MMPA reached out to us looking for a better value from their byproduct, we were making vodka from milk permeate,” Omid McDonald, Dairy Distillery Founder & CEO said. “After some phone calls and meetings, we realized that the amount of permeate that MMPA’s Constantine, Mich. plant produces would yield millions of bottles of vodka which would be hard to sell. We then turned to look at using permeate to make biofuel. That’s where this project came from.”
While the volume of vodka would have flooded the market, there is a strong need for low-carbon biofuel. From the idea’s inception, pieces of the puzzle have continued to come together.
“The ability to solve a problem for milk permeate and create a way to add value was the first win,” Brad Parks, MMPA Director of Strategic Initiatives explained. “The second is that the project let us build a state-of-the-art wastewater treatment plant that will use the biogas produced when manufacturing low carbon fuel to fuel the treatment processes.”
The new wastewater treatment facility removes the Constantine plant’s reliance on the municipality’s wastewater treatment facility and lets the new plant be run nearly carbon neutral. The only question that remained, was cash flow.
“I wondered how competitive we were going to be on the revenue side of ethanol,” Parks added. “But then the opportunity came along where the airline industry expressed interest in utilizing all of the ethanol that we would produce for sustainable airline fuel. That became the third win. Our revenue side is locked up long term and we have a more secure economic model.”
The win-win-win will benefit MMPA’s member owners and has resulted in breaking ground on the lowest carbon dairy ethanol plant in America. The success of the official groundbreaking of Dairy Distillery Alliance’s 2.2 million gallon ethanol plant in August though, didn’t come without its challenges.
Jumping Through Hoops
“It’s been a lot more complicated than what we envisioned,” Parks said. McDonald added, “I call myself a seal, used to jumping through hoops, but this is a big project. We knew it wouldn’t be simple. It’s a first of its kind, it’s something new, but what we are doing together in Constantine is worth all the hassle.”
The list of what they both consider red tape includes securing grant money, partnering with agencies and contractors, and working with state and federal agencies. Thanks to teamwork between the two organizations, the red tape is behind them.
“Dairy Distillery brings the distillation expertise on operating an ethanol plant, and we’re bringing the ability to generate milk permeate, which feeds the plant,” Parks said. “We both bring expertise and knowledge to the partnership that the other doesn’t have.”
The partnership between Dairy Distillery and MMPA may seem happenstance, but Parks is quick to point out that “our organization has a desire to innovate and look at things in a new way, diversify what we make and expand our footprint. We’re always on the lookout for opportunities. That goes a long way. You can call the project luck, but you can also say we were on the lookout for that.”
Science As Old As Time
Despite the new and unique use of the Dairy Distillery Alliance innovation, when it comes to the distillation process to produce the ethanol, the milk permeate ethanol plant relies on science experimented with during the 1970s oil crisis.
“The process is almost as old as mankind,” McDonald explained. “With fermentation, the yeast we have eats the lactose, converts that into alcohol and then we use standard distillation to purify that alcohol to ethanol. From there, it can be used in cars or in planes.”
In Constantine, 14,000 tons of milk permeate will be piped under the road from the dairy plant to the ethanol plant annually, requiring no additional transportation. From there, the permeate will fill fermentation tanks before going onto to be distilled. The distillation process requires heating the mixture of water and alcohol until the alcohol vapor evaporates through the still. Then, it gets dehydrated to 99 percent alcohol. The final product will be sent via rail car to become sustainable aviation fuel.
“Constantine’s dairy-based ethanol is going to power planes and milk permeate has the potential to reduce the carbon footprint of air travel by 50%,” McDonald said. “This project is part of the dairy industry’s bigger message that dairy is sustainable and getting even more sustainable. Dairy production’s carbon footprint in the U.S. has been decreasing consistently for a decade, and this is just one more step.”
The Sustainability Story
The low-carbon ethanol plant will offset 14,500 tons of carbon a year, equivalent to 5% of Constantine’s carbon footprint for milk processing.
“Traditional gasoline emits 88 grams of CO2 for every megajoule of energy it produces, corn ethanol emits 55 grams of CO2 per megajoule, and Constantine’s ethanol is going to be around 12 grams of CO2 per megajoule,” McDonald explains. “Because the grass that the cow ate was carbon that was captured when the cow eats it, we capture that sugar, so essentially the ethanol is taking the carbon out of the atmosphere and putting it back in, so it’s neutral, and that’s the goal.”
The sustainability message is one that MMPA is carrying forward. Beyond being good for the environment, the value-added ethanol also provides a diversified revenue stream that will benefit member-owners.
“This project shows how we can turn environmental responsibility into an economic opportunity,” Joe Diglio, MMPA President & CEO said. “By converting milk permeate into ethanol, we’re not only upcycling a dairy byproduct, but also creating a new revenue stream for our member-owners. This project is a win for the environment, a win for our cooperative, and a testament to our commitment to leading the dairy industry into a more sustainable future.”
The ethanol plant is expected to be in commission mid-2025, while the wastewater treatment facility is on track to begin operation by end of the year. Looking to the future, McDonald and Parks are excited about the possibilities.
“It takes someone to take the first step and MMPA has done that in Constantine,” McDonald said. “Others are now looking at doing the same at their facilities. The need for low carbon energy is one that’s just going to grow, and the amount of milk permeate being produced across the world is growing as well.”
McDonald added, “Once we have shown that we can make a value for MMPA and achieve the carbon reduction that we’re on target to achieve. Then, the sky’s the limit.” Quite literally. What started as McDonald’s self-considered “far-fetched idea” has turned around and proved the impossible. “I never thought cows would fly.”
This article was originally published in the September/October 2024 issue of the Milk Messenger. Subscribe »