It's called the Bio-Energy Recovery Project.
A ribbon-cutting ceremony was held today to celebrate.
The project will power more than 70 GoRaleigh buses every day.
City leaders say the hope is to remind people waste can be used for a lot of things.
"Kids really do love to learn about how we are making our poop, i said it, into renewable fuel for buses. There's nothing cooler for a kid than that. And honestly adults really love to hear about this too from flush to fuel, this project reminds us that waste is not just waste, with the right vision it becomes a resource, a community asset and even a source of inspiration," said Megan Anderson who is the sustainability manager for the City of Raleigh.
It's all part of Raleigh's goal, to reduce greenhouse gas emissions by 80% by the year 2050.