Lafarge is proposing to use ’processed sewage pellets’ at Hope Cement Works, between the villages of Hope, Castleton and Bradwell, which already burns unusual items such as chipped rubber tyres and bone meal.
The company has applied to the Environment Agency, the Government body which regulates industrial emissions, for permission and hopes to begin using the fuel in late summer or early autumn.
Officials from Lafarge informed residents in the area of the plans by issuing a newsletter to 5,000 homes and holding two exhibitions.
The firm said it wanted to introduce the fuel to save money because of increased competition in the cement market and a serious downturn in demand.
Hope Works manager Ashley Bryan said: "We are committed to open communications about our operations and it was important we consulted with our neighbours and stakeholders about our plans for this new fuel.
"Extending the range of sustainable waste-derived fuels we can use offers us a good way to keep a check on our costs which have been escalating due to the volatility and high price of energy."
He added: "It is estimated that, by using 30,000t of the pellets, 20,000t of coal will be replaced - which is enough coal to power over 6,000 homes for a year - and emissions of CO2 will be reduced by approximately 50,000t."