Hamilton and Enbridge Gas are teaming up to put Ontario's first renewable natural gas fuelled bus on the road.
The bus pilot project has started and will run for a year, diverting 450 tonnes of organic waste away from the landfill - the equivalent of 38 garbage trucks.
The bus will also displace CO2 emissions from 36,000 litres of diesel consumed in a year.
It runs on upgraded biogas, a gaseous product of the decomposition of organic waste.
The fuel will be provided by StormFisher in London, Ontario.
Hamilton officials say renewable natural gas buses cost half of what electric buses do and the fuel price is similar to diesel.