Grundon Waste Management is deciding on its next steps after Scottish Ministers rejected a planning appeal by the company for a facility in Perth.
The company planned to build a gasification facility using technology from Advanced Plasma Power.
While outline planning permission was granted by Perth and Kinross Council in 2006, subsequent applications were rejected by the council leading to the appeal being lodged last year.
Scottish Government reporter Dannie Onn who conducted a public inquiry into the matter said in his report that living conditions at the nearby Perth Prison and houses would have been harmed by excessive noise from the facility.
He also said that SEPA was not convinced the plant could be consented.
Grundon estates director Andrew Short said: “Our revised report of May 2011 addressed everything that has been asked of us in the Directorate for Planning and Environmental Appeals reporter’s conclusion on the previous appeal. Taken together with all the additional information and technical assessments we produced, we were confident that the Scottish Ministers would recognise both the suitability and the sustainability of our proposals.
“This facility would have made a positive contribution towards meeting the Scottish target for zero waste to landfill. It would also have made a significant contribution to the local economy in terms of both wealth and employment creation.
“We strongly believe this is a missed opportunity for both Perth and Scotland and we will now consider our position in terms of our next steps.”
