Rhoads Energy has started construction of a new biodiesel facility in central Pennsylvania as part of its efforts to expand renewable fuel distribution and increase access to cleaner heating fuel.
The facility is being developed at a rail siding within Red Rose Midstream, a fuel distribution hub operated by the company in Rapho Township, Lancaster County.
According to the company, the plant is expected to become operational by late July and will enable direct transfer of 100 percent biodiesel from rail cars into tanker trucks, PennLive reported.
Rhoads Energy said the project is aimed at strengthening supply of bioheating oil and improving fuel delivery efficiency for customers.
Last year, the company announced plans to shift entirely to bioheating oil deliveries.
In a statement, the company noted that most biodiesel is currently transported by trucks from distant terminals such as New York Harbor. The new rail-based terminal is expected to reduce transportation costs, improve supply reliability and generate savings that can be passed on to consumers.
The project includes site development work, construction of new roads, installation of pumping equipment and other infrastructure improvements. The company also confirmed that it secured funding support through a grant from the United States Department of Agriculture to help finance part of the construction.
Commenting on the project, Michael DeBerdine said the biodiesel facility reflects the company’s continued investment in renewable fuels and will provide greater control over fuel supply while helping lower costs.Founded more than a century ago, Rhoads Energy supplies heating oil, propane and natural gas, and also provides fleet fueling services across several locations in Pennsylvania, including Lancaster, Peach Bottom, Parkesburg, Sinking Spring, Lebanon, Exton and New Berlinville.
