Plans for the Green Lane Eco Park in Salford have been rejected by Planning Inspectors.
Sky Properties planned to build an Energos gasification facility on the site as well as an anaerobic digestion plant and a materials recycling facility.
The gasification plant was due to process around 80,000 tonnes per year, with the AD plant treating 60,000 tonnes and the MRF processing 100,000 tonnes.
Sky Properties appealed to the Planning Inspectorate after the plans were rejected by Salford Council in 2011.
But inspectors rejected the appeal saying that the eco park did not fit in with the area’s development plan.
Salford Council assistant mayor for strategic planning Derek Antrobus said: “The development has been extremely unpopular among the local community and the planning inspector took this strength of feeling into consideration when making his decision.
“There is a need for developments like this, but it is essential we consider resident’s views when looking at where they should be located.
“In this particular case, the site was not appropriate and we are pleased that the planning inspector has upheld the planning panel’s decision.”
In a statement, Sky Properties said: “Sky Properties is obviously disappointed by the decision to dismiss the appeals to provide much needed energy from waste facilities to serve Greater Manchester and the wider region from the Green Lane site.
“The inspector agreed with Sky’s evidence as presented at the inquiry that the proposals would have no impact on air quality, noise or on highway safety or congestion of the local highway network.
“The inspector has based his decisions on the emerging character of the area to be one of residential, tourist and existing industrial use.
“Sky is therefore considering alternative uses for the Green Lane site which reflect the hopes and aspirations of the local residents as expressed by them at the inquiry and to actively engage with Salford Council to achieve those aspirations.”