CONSTANTINE, Mich. (Michigan News Source) – A Canadian company plans to invest $41 million in a Michigan facility that will turn a milk byproduct into ethanol.

Ontario-based The Dairy Distillery Alliance is partnering with the Michigan Milk Producers Association, a co-op of 1,000 famers, to develop the plant in Constantine near the Indiana border in St. Joseph County.

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The Michigan Strategic Fund awarded the project a $2 million grant this week. In addition, the project received a 15-year tax break valued at $751,900. The plant is expected to create 12 jobs.

This will be the first Dairy Distillery facility in the U.S.