Communities Secretary Eric Pickles informed Nottinghamshire county council that he had opted to agree with the planning inspector's decision to refuse the proposed 180,000 tonnes-a-year capacity plant
The grounds given in a 285-page planning report were that the communities secretary could not be satisfied that the plan would not harm the integrity of the local area and that it was thought to conflict with the development and national planning policies.
Indication was made that the development of the £90m large-scale Rainworth energy-from-waste plant would push Nottinghamshire's treatment methods up the waste hierarchy.
The plant was set to form a cornerstone of Veolia's long-term, £850m residual waste contract with Nottinghamshire county council, which was signed in June 2006.
Nottinghamshire granted planning permission for the plant in January 2009, however, the proposal was called in for decision by the Secretary of State on March 18 2009. A public inquiry started in October 2009.
Commenting on today's decision by Pickles, Steve Mitchell, managing director of Veolia ES Nottinghamshire, said the company was "disappointed" with the decision on the project, which has been in development for five years.
"A state of the art Energy Recovery Facility would have significantly reduced the amount of waste sent to landfill in Nottinghamshire, generated enough electricity for 15,000 homes and heat for other local businesses and future developments," he said.
"The facility would have helped regenerate the Rainworth economy and the surrounding area by bringing new jobs and investment.
"In the coming weeks we will work with Nottinghamshire county council to consider alternative options and a way forward on how to deal with the county's municipal waste."
Mick Burrows, chief executive at Nottinghamshire county council also commented: "We now have a decision from the Secretary of State and it brings this long standing issue to a conclusion. We will now work to find alternative sustainable waste management solutions for the people of Nottinghamshire."