The business called Paradigm BioAviation, uses waste from landfills to operate planes.
One of its team members lives in Bloomington.
He says the company has been working on the project for more than three years.
It's a process of turning gas into a carbon molecule, which condenses to make a liquid.
He says there's enough waste in the Bloomington landfill to make this alternative fuel for years.
The idea will be presented to the city next week.
"This is very cutting edge," said Bloomington Mayor Steve Stockton. "It does seem well suited for this area. So, yes, we're very excited about this. However, we know there are a lot of details that still need to be worked out yet."
The company says creating a natural resource in McLean County means money stays here.
Fuel won't have to be purchased from other places.
It's eyeing space near the Bloomington airport as a possible location.