Rhoads Energy breaks ground on new biodiesel terminal in Pennsylvania

Representatives from Rhoads Energy and community leadership break ground on Rhoads’ new biofuel center. (Photo: Rhoads Energy)

Lancaster, Pennsylvania-based Rhoads Energy announced April 29 that it has broken ground on new infrastructure that will expand the region’s access to biodiesel.

Rhoads Energy will develop the biodiesel facility at a rail siding located at Red Rose Midstream, a fuel-distribution hub in Rapho Township that is operated by Rhoads.

The new infrastructure, slated to open in late July, will pump 100 percent biodiesel directly from rail cars to tanker trucks.

Biodiesel is a critical component in creating B5 Bioheat, a blend of 5 percent biodiesel and standard heating oil that significantly reduces carbon emissions and air pollutants.

Last year, Rhoads Energy announced that it would exclusively deliver Bioheat fuel oil to thousands of homes, part of its drive to offer clean-burning, renewable fuels.

Here’s how Rhoads Energy’s new terminal will benefit biodiesel distribution, and the community at large:

• Easy access, lower cost: Currently, most biodiesel is trucked in from distant terminals, like the New York harbor. Rail delivery via the new Rhoads terminal will significantly lower transporting costs, boost reliability, and yield savings that can be passed to consumers.

• Expanded use of greener fuel: Closer proximity will encourage more suppliers to deliver cleaner burning fuels like Bioheat fuel. When more homes use clean fuel, the environmental benefits multiply for the region’s residents.

• Advantages for homeowners: Bioheat fuel burns cleaner, which improves efficiency, increases equipment lifespan and reduces deposits on the components in standard oilheat systems. Along with cleaner air, homeowners benefit from improved equipment performance and fewer fuel-related malfunctions over time.

“Our new biodiesel facility is part of Rhoads Energy’s ongoing investment in renewable fuels,” said Michael DeBerdine, CEO of Rhoads Energy. “Our new terminal gives us greater control over our fuel supply and lowers costs for everyone. We will continue to explore ways to expand renewable fuels to benefit our customers—and our region’s air quality.”

Development of the new distribution area will include site development, installation of roadways, new pumping equipment and other improvements.

Rhoads Energy secured a USDA grant to help fund a portion of the construction.