A proposed incinerator in Rathcoole in Co Dublin has been refused planning permission by An Bord Pleanála.
The board upheld opposition from the four Dublin authorities who said the incinerator would affect the viability of the planned facility in Poolbeg.
US company Energy Answers promised a €200m investment to the waste recovery facility on the N7.
It said it would process 365,000 tonnes of waste a year using the latest technology to minimise pollution.
But An Bord Pleanála accepted the arguments of the four local authorities.
It also rejected the plans on traffic grounds after the National Roads Authority expressed safety and congestion fears for the N7.
The board also said the incinerator stack in a quarry void would be too low for surrounding land and posed an unacceptable risk of pollution.
The decision was welcomed by local objectors who claimed prevailing winds would have blown dioxins over Dublin city.
Because the application was fast tracked under the strategic infrastructure process, the board has ordered Energy Answers to pay over €140,000 in costs to the board and objectors - including local developers.
