The scheme, which was launched in March last year and extended in October, could expand from the 85 homes currently taking part up to 6,000.
Yorkshire Water is providing a grant of £10,000 to help expand the project, which is being led by the Karmand Community Centre based in Bradford Moor.
The initiative sees local residents collect their waste cooking oil in tubs, also known as fat vats, rather than tipping them down the kitchen sink.
These vats are then collected from residents’ doorsteps and the cooking oil is sold to renewable energy companies to refine and turn into biofuel.
As a result of the scheme, there has been an almost total elimination of sewer blockages in the area, caused by fatbergs created from the waste cooking oil.
Yorkshire Water network protection technician Duncan Woodhead said: “Since launching the scheme in 2014, it has already been a great success with 1,000 litres of cooking oil collected and diverted from the sewers.
“A knock on benefit has also been the revenue opportunities created for the Karmand Community Centre to sell the cooking oils to renewable energy companies.”
Karmand Community Centre project manager Mohammed Shakeel added: “We hope to eventually collect as much as 1,000 litres of cooking oil a week from thousands of local houses which is really exciting.
“More than anything else though, it’s great to see local people engaging in the project and understanding the benefits it can bring to the community as a whole.”
A version of this story first appeared on wwtonline.