Michigan Milk Producers Association and Canadian Dairy Distillery announced an initiative that will transform a dairy byproduct called permeate into ethanol, adding to the biofuel supply for cars and trucks.

MMPA President and CEO Joe Diglio explains that 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 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 a year or 6,000 per day.

When blended in E10 (most common type of fuel which is 10 percent ethanol), it will make 60,000 gallons of fuel a day. Using an average tank size of 13 gallons, it's enough to fill 4,615 cars a day.

Construction on the ethanol plant is expected to begin in a few months. Ethanol is expected to be produced by early 2025.

Diglio says this partnership an be a blueprint for other dairy organizations across the nation to innovate and enter new markets.