Boeing is requesting permission from regulators to use green diesel instead of jet fuel.
The American aeroplane manufacturer believes the environmentally-friendly alternative will enable airlines to operate with a reduced carbon footprint, without raising operating costs.
The fuel, made from material such as cooking oil and waste animal fats, has the capability to operate in any diesel engine and tests conducted by Boeing suggest it can be blended with oil-based jet fuel.
Boeing claim that the economical benefits of the fuel would be two-fold, with production capacity soon expected to hit 800 million gallons per year and the US government offering a financial incentive to businesses using renewable energy sources.
James Kinder, technical fellow at Boeing's commercial airplanes propulsion systems division, said: "Green diesel approval would be a major breakthrough in the availability of competitively priced, sustainable aviation fuel."
According to Boeing, green diesel will emit at least 50 per cent less carbon dioxide over its lifespan than fossil fuels.