Air New Zealand deputy chief executive Norm Thompson confirmed one of the airline's planes would take part in a one-hour flight using the second generation biofuel Jatropha.
The test run would be the first of its kind using a generation two biofuel, after other airlines had used generation one fuels in past trials, Mr Thompson said at the Trenz conference in Rotorua.
The test run would not be a passenger flight, he said.
"We won't do it unless it is safe," he said.
The biofuel would be used to power one of the aircraft's four engines, which would be stripped down after the flight to see how the biofuel, which has been sourced from India and China, performed.
The airline was working in partnership with Boeing and Rolls Royce to develop an alternative fuel source.
"We want to be getting on this bandwagon sooner rather than later," he said.
The biofuel would undergo rigorous testing to satisfy the Civil Aviation Authority, with its implementation across Air New Zealand's fleet still some years away.
Jatropha was a toxic weed, and was not grown on what would otherwise be crop land in developing areas, he said.
With huge increases in the cost of aviation fuel in recent years, it was imperative the airline explored options such as biofuel, he said.
"It is happening quicker than we have planned," he said.
The biofuel was likely to be used in Air New Zealand's domestic fleet of 61 planes. Difficulties in securing supplies overseas made it harder to introduce the biofuel for long-haul flights overseas.
"When you go down the biofuel track you have to be sure of supply," he said.
