The BioBus project in Lincoln has been shortlisted for the "Environment Award' in the UK Bus Awards 2012.
Stagecoach East Midlands developed the project with Lincolnshire County Council and the green eco-buses operate around the historic Cathedral Quarter of the city.
The vehicles run on a hybrid mis of biome thane and diesel reducing carbon and exhaust emissions.
There were 11 of the buses fuelled by food waste introduced in June 2011.
More than 270 nominations were put forward for the UK Bus Awards that celebrate excellence and good practice with operation, design and promotion of bus services.
The awards ceremony will take place in London on November 20.
Gary Nolan, Managing Director for Stagecoach East Midlands said: "The BioBuses are part of a pioneering project to develop gas powered buses in Lincoln, which are a cleaner and greener way to travel around this beautiful city.
"Technically, it was a hugely challenging initiative and so it is extremely pleasing to see the hard work of those involved recognised in the awards shortlist.
Chris Briggs, Head of Transportation at Lincolnshire County Council said: “We are particularly pleased that this trial is also helping us to tackle climate change, with these distinctive liveried green buses already having saved over 170 tonnes of carbon.
"It is hoped that the success of this project will encourage others to explore alternatives that reduce the reliance on fossil fuels."