Plans to process ash at a quarry in Devon have been rejected.
MVV Energie wanted to transport ash from a waste-to-energy incinerator under construction in Plymouth to Whitecleave Quarry, near Buckfastleigh.
The proposals were previously rejected by Devon planners amid concerns about noise, dust and traffic. Residents expressed similar concerns.
MVV appealed against the decision, but the Planning Inspectorate dismissed it, saying there were not enough benefits.
'Harm to biodiversity'
MVV was planning to move about 57,000 tonnes of ash a year to the quarry for recycling into building material.
The plant was also to process about 25,000 tonnes of construction and demolition waste a year.
Dismissing MVV's appeal, the inspectorate said the evidence did not demonstrate that the scheme "would deliver sustainable waste management".
It added: "The proposed facility would have some benefits, but, overall, I consider that the likely harm to biodiversity and the conflict with waste policy weighs against allowing the appeal."
MVV managing director Paul Carey said the company was "disappointed with this outcome".
He added it would be "reviewing the inspector's reasons for refusal before deciding whether there are grounds to challenge the decision".
"We will also be looking to find other sites where we can meet our obligations to recycle the incinerator bottom ash and use it in local markets," he said.
The Buckfastleigh Community Group said it was celebrating the decision.
The waste to energy plant in Plymouth is due to start operating by the end of next year.