Michigan milk-to-ethanol plant breaks ground

Market: Agriculture, Biofuels
08/08/24

A Canada-based milk-to-alcohol provider has begun construction on a Michigan plant designed to produced 2.2mn USG/yr of ethanol using milk byproduct sourced from dairy farms.

Through a joint venture with the Michigan Milk Producers Association, Ontario-based Dairy Distillery will produce the biofuel using 14,000 metric tonnes/yr of milk permeate at the plant in Constantine, Michigan, which broke ground on 6 August.

The $41mn project was announced last year and is expected to begin ethanol production in early 2025. The plant received $2.5mn in funding from the state of Michigan.

Dairy Distillery uses milk permeate to produce vodka in Ontario, marketed at Vodkow. The Michigan plant will be its first to produce ethanol for fuel-use.

The company's new footprint in the US will allow it to take advantage of various federal tax credits for biofuels producers laid out in the Inflation Reduction Act.

By Payne Williams

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

12/06/25

Ireland keeps double counting for Pome biofuels

London, 12 June (Argus) — The Irish transport ministry has signed an amended regulation that will continue to allow for biofuels made from palm oil mill effluent (Pome) oil to be counted twice towards domestic mandates, but prevent the granting of additional renewable fuel certificates to biofuels made from the waste feedstock from 1 July. Irish biofuels legislation allows for two renewable fuel certificates to be generated per megajoule for fuels made from feedstocks listed in Annex IX of the EU's Renewable Energy Directive (RED), which includes Pome oil. This is known as double counting. A second piece of legislation, the National Oil Reserves Agency Act 2007 (Additional Certificates for Renewable Transport Fuel) Regulations, allows for extra certificates to be generated for fuels from Annex IX feedstocks on top of double counting. The amended regulation will prevent the additional generation of 0.5 certificates per megajoule of hydrotreated vegetable oil, 0.4 certificates per megajoule of fuel supplied into the aviation sector and 0.4 certificates for megajoule of fuel supplied into the marine sector, if produced from Pome oil. Biofuels produced from other feedstocks listed in Annex IX will still be eligible for this. The National Oil Reserves Agency, which administers Ireland's biofuels mandate, reviewed Pome oil consumption data last year and recommended excluding Pome oil-based fuels from double counting, along with an exclusion from additional certificate generation. It also suggested implementing a Pome oil cap for the mandate, but acknowledged administrative barriers. Ireland was one of four member states that last year approached the European Commission to ask for its support in the analysis of Pome oil-based biofuel usage. The commission responded by saying it would be launching a working group with member states on sustainability and fraud in the lead-up to states transposing the recast RED III. By Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more

News

EU ethanol market monitors possible reclassification

12/06/25

News

12/06/25

EU ethanol market monitors possible reclassification

London, 12 June (Argus) — The European ethanol market awaits the final verdict of the European Chemicals Agency (ECHA), the registry of classification and labelling (CLH), on the potential classification of ethanol as a carcinogenic, mutagenic, or toxic for reproduction (CMR) substance. The decision is expected in the second half of this year. The classification would ban the use of ethanol in certain cosmetic applications. Some market participants said that it could mean that additional protective measures would be required when handling fuel grade ethanol, such as operators having to wear protective clothing and monitoring their exposure more closely. European renewable ethanol association ePure said that the decision "would have many undesirable and disproportionate effects in multiple sectors and industries". Greek authorities submitted a proposal to the ECHA asking it to classify ethanol as a CMR substance back in July 2020. This classification would suggest potential toxicity based on limited evidence from human or animal studies. The dossier submitted by the Greek authorities argues that ethanol causes developmental harm, in regard to prenatal alcohol exposure, and potential effects via breastmilk. Supporting data all derives from hazards caused by oral consumption. Industrial-grade ethanol, often referred to as denatured alcohol, serves as a key ingredient in a wide range of products, including cosmetics, disinfectants, pharmaceuticals and paints. Consumption of the grade increased during the Covid-19 pandemic, when many manufactures turned to ethanol to tackle disinfectant supply shortages. In contrast, fuel-grade ethanol, typically referred to as undenatured ethanol, must meet EN (European Standard) specifications and adhere to sustainability standards set by certification bodies like the International Sustainability and Carbon Certification (ISCC) before being blended into gasoline. According to ePURE data, 6.4bn l of ethanol was produced in Europe in 2023, with 5.5bn l or just under 86pc being for fuel, while only 7.6pc was for industrial use and 6.5pc for beverages. In an open letter sent to the European Commission on 8 November 2024, the International Association for Soaps, Detergents and Maintenance Products (AISE) requested for an "urgent intervention" on this potential reclassification. In the letter they said that this would impact both the general public and professional users, like in hospitals, where they said there is "no suitable alternative" to ethanol-based sanitisers. Some have suggested that ethanol producers impacted by the ban might turn to the fuel ethanol market. But, the increased supply this re-classification could bring to the fuel market, depends on whether producers have or could obtain ISCC or equivalent accreditation. By Toby Shay and Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

EPA readies new biofuel blend mandate proposal

12/06/25

News

12/06/25

EPA readies new biofuel blend mandate proposal

New York, 12 June (Argus) — President Donald Trump's administration is close to releasing two regulations informing oil refiners how much biofuel they must blend into the conventional fuel supply. The two rules — proposed biofuel blend mandates for at least 2026 and most likely for 2027 as well as a separate final rule cutting cellulosic fuel mandates for last year — exited White House review on Wednesday, the last step before major regulations can be released. Previously scheduled meetings as part of the process appear to have been cancelled, another signal that the rules' release is imminent. The Environmental Protection Agency (EPA) has said it wants to get the frequently delayed Renewable Fuel Standard program back on its statutory timeline, which would require volumes for 2027 to be finalized before November this year. Any proposal will have to go through the typical public comment process and could be changed. A coalition of biofuel-producing groups and feedstock suppliers, including the American Petroleum Institute, has pushed EPA to set a biomass-based diesel mandate of 5.25bn USG for 2026, hoping that a record-high target will support biorefineries that have struggled this year. Many plants have idled or run less recently, as uncertainty about future blend mandates, the halting rollout of a new clean fuel tax credit, and tariffs that up feedstock costs all hurt margins. EPA administrator Lee Zeldin also told a House subcommittee last month the agency wanted "to get caught up as quickly as we can" on a backlog of small refiner requests for program exemptions. Courts took issue with EPA's exemption policy during Trump's first term and again during President Joe Biden's tenure, leaving officials now with dozens of waiver requests covering multiple compliance years still pending. It is unclear whether the rule will provide clarity on EPA's plans for program waivers — including whether the agency will up obligations on other parties to make up for exempt small refiners — but biofuel groups have worried that widespread exemptions would curb demand for their products. The price of Renewable Identification Number (RIN) credits used for program compliance have been volatile this year on rumors about these exemptions, which EPA has called market manipulation. RIN trading picked up and prices rose on the news as Thursday's session began. Bids and offers for 2025 ethanol D6 RINs, the most prevalent type currently trading, began the day at 96¢/RIN and 98¢/RIN, respectively. Deals were struck shortly after at 98¢/RIN and 99¢/RIN, with seller interest at one point reaching 100¢/RIN — well above a 95.5¢/RIN settle on Wednesday. Biomass-based diesel D4 RINs with concurrent vintage followed the same path with sellers holding ground as high as 107¢/RIN. By Cole Martin and Matthew Cope Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

EU adopts new Russia, Belarus tariffs

12/06/25

News

12/06/25

EU adopts new Russia, Belarus tariffs

Brussels, 12 June (Argus) — The EU has now formally adopted new tariffs on remaining Russian and Belarus agricultural products, as well as on a range of fertilizers. The regulation, implementing the tariffs, enters into force on 1 July. EU officials estimate the new agricultural tariffs cover up to 15pc of Russian agricultural exports to the EU in 2023. The EU would, from 1 July, place an additional 50pc tariff customs duty based on value on over 145 CN codes. Goods covered include animal, dairy, live trees and other plants, coffee and meat as well as various animal fats and plant oils, including palm and palm kernel oil. The implementation of tariffs is to take place over three years for nitrogen-based and compound fertilisers. The new tariffs add an additional €40/t on imports of most nitrogen fertilizers — including urea, amsul, AN, CAN, and UAN — from Russia and Belarus, beginning on 1 July. They also add €45/t to the import of DAP, MAP, NPKs, NP and some other grades. The new tariffs are additional to already-existing import tariffs to the EU. For most grades from Russia these import tariffs are set at 6.5pc. From 2026 until 2028 the rates increase to reach levels of €315/t and €430/t respectively for the two product groups. The legal text also foresees immediate application of the highest rates, if cumulative imports exceed 2.7mn t in 2025-2026, 1.8mn t in 2026-2027, or 0.9mn t in 2027-2028. The European Parliament adopted the additional tariffs last month. Like EU states, parliament confirmed the commission's legal proposal, leaving unchanged the rates and phase-in period of tariffs proposed by the commission at the end of January. By Dafydd ab Iago EU proposed import tariffs for Russia and Belarus ( €/t *) Urea, Amsul, AN, CAN, UAN NPKs, DAP, MAP, NP Jul 25-Jun 26 40 45 Jul 26-Jun 27 60 70 Jul 27-Jun 28 80 95 From Jul 28 315 430 *All tariffs on top of 6.5pc import duty. Levels are applicable for a total of 2.7mn t in 2025-26, 1.8mn t in 2026-27, and 0.9mn t in 2027-28. Once the quota has been reached, levels jump to the level from July 28 — EU Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Australian cattle herd hits 30mn head in FY2023-24: ABS

12/06/25

News

12/06/25

Australian cattle herd hits 30mn head in FY2023-24: ABS

Sydney, 12 June (Argus) — Australia's total cattle herd grew to 30.4mn head in the 2023-24 financial year to 30 June, the Australian Bureau of Statistics (ABS) said today. But separate forecasts indicate numbers could fall over the next few years. Australia's cattle herd grew by about 2pc on the year to 30.4mn head as of 30 June 2024. Beef cattle represents about 93pc of the total herd. Queensland's beef numbers grew by 3pc on the year to 13.6mn head as of 30 June 2024 because of favourable seasonal conditions, accounting for around 45pc of Australia's total beef herd. Herd numbers also increased in South Australia in the 2023-24 financial year, despite most of the state experiencing below or very much below average rainfall over the year, particularly in the southeast of the state where the cattle numbers are concentrated. But the herd is forecast to shrink to 30.1mn head as of 30 June 2025, before declining to 28.8mn head as of 30 June 2027, because of higher rates of female slaughter, according to separate forecasts by Meat and Livestock Australia released in March. By Grace Dudley and Ed Dunlop Australian cattle numbers 000 head FY 23-24 FY 22-23 % ± y-o-y New South Wales* 6,197 6,134 1.0 Victoria 4,166 4,146 0.5 Queensland 13,587 13,238 2.6 South Australia 1,245 1,214 2.5 Western Australia 2,363 2,383 -0.8 Tasmania 880 861 2.2 Northern Territory 1,934 1,925 0.5 Australia 30,373 29,902 1.6 *Includes Australian Capital Territory Source:ABS Australian cattle herd ('mn head) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more