Rhoads Energy broke ground this week on a biodiesel terminal in Rapho Township that will pump fuel directly from rail cars into tanker trucks, cutting out the long-distance truck haul that has been the default route for biodiesel moving into the Northeast. The Lancaster County facility, built at Rhoads' Red Rose Midstream distribution hub, is slated to open in late July.
Most biodiesel sold across our region rolls in by tanker truck from distant terminals, frequently the New York Harbor. Rail delivery into central Pennsylvania reshapes that math: lower transport costs, fewer truck miles, and a supply line that doesn't bottleneck on a single import port.
For Northeast collectors and haulers, that's the part worth watching. The biodiesel flowing through Rhoads' new terminal will draw on used cooking oil (UCO), the yellow grease our industry pulls from restaurant fryers, alongside other renewable feedstocks. More biodiesel moving through the Northeast means more downstream pull on the grease coming off routes today.
Rhoads itself has been building toward this. Last year, the dealer announced it would exclusively deliver B5 Bioheat, a blend of 5% biodiesel and standard heating oil, to the thousands of homes it heats. The new terminal gives that commitment its own infrastructure, instead of leaning on third-party trucking from out of state.
"Our new terminal gives us greater control over our fuel supply and lowers costs for everyone," said Michael DeBerdine, CEO of Rhoads Energy, in the company's announcement. Rhoads also secured a USDA grant to help fund a portion of the construction.
