Infrastructure Minister Nichola Mallon has refused permission for the incinerator and waste management plant on the outskirts of North Belfast.
The plan by Arc21, an umbrella waste management group made up of several councils in the east of Northern Ireland, would have seen the construction of a facility in Mallusk, Co Antrim, capable of thermally treating 300,000 tonnes of waste per year.
The proposal had been not been without opposition, with the Department for Infrastructure receiving over 5,000 letters objecting to the planned facility in Newtownabbey.