State boost bringing $41.1 million investment to Constantine dairy facility

A Constantine dairy facility will be producing ethanol in the future.

Gov. Gretchen Whitmer and the Michigan Economic Development Corporation announced Tuesday the Michigan Strategic Fund approval for a new dairy processing facility that will reduce the carbon footprint of dairy byproduct and bring new jobs and infrastructure to the community. A total capital investment of $41.1 million is expected.

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 at Michigan Milk Producer Association's Constantine facility.

The project is expected to create 12 well-paying jobs. Michigan was chosen for the project over a competing site in Indiana.

“This investment by Dairy Distillery will create long-term opportunity in our state’s vital food and agriculture industry and builds on our efforts to create good-paying jobs, support sustainability efforts, and invest in every region of our great state,” Whitmer said in a statement. “Our future is bright, and by continuing to work together on bipartisan economic development efforts, we can bring in more investments like this one by Dairy Distillery to us move Michigan forward.”

Dairy Distillery Alliance, LLC is a joint venture between Michigan Milk Producers Association and Dairy Distillery USA. 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. Dairy Distillery is a Canadian company that has developed technology to transform milk permeate, a byproduct of milk and other dairy processing, into ethanol.

MMPA and Dairy Distillery plan to build a milk permeate ethanol plant at the MMPA Constantine dairy facility. The plant will use Constantine’s milk permeate to produce 2.2 million gallons of low carbon ethanol. When blended with transportation fuel, the permeate ethanol will offset 14,000 metric tons of carbon emissions, lowering the carbon footprint of the milk processed at Constantine by 5%.

The project includes the construction of a new 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. The output of the wastewater system will be a clean water stream that will eliminate Constantine’s dependence on the local utility to treat its process waste. The plant is scheduled to start production in 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 in a statement. “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 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,” said MEDC Chief Operating and Customer Experience Officer Jennifer Nelson.

The village of Constantine anticipates approval of a property tax abatement in support of the project. The MEDC also authorized a State Education Tax abatement to be used in conjunction with the locally approved abatement.

“This is an exciting growth opportunity for St. Joseph County and our region,” said Jill Bland, executive vice president at Southwest Michigan First. “Along with job growth and a total capital investment of over $41 million, we're seeing a significant step forward in sustainable practices in Michigan's agribusiness industry.”

This article originally appeared on Sturgis Journal: State boost bringing $41.1 million investment to Constantine dairy facility