Anaerobic digestion operator TEG said its planned joint venture with Alkane Energy to build a biogas plant in North East Wales will not now go ahead.
TEG told the stockmarket it "has not been possible to agree contractual terms with the funders".
In November, TEG said it had secured a bank offer for the £40m facility, which would have processed waste from Denbighshire, Conwy and Flintshire local authorities. However, the bank offer was not ultimately on terms satisfactory to the joint venture or councils.
The £8m plant would have been built on a council-owned former abattoir site in Rhuallt near St Asaph, on the Denbighshire-Flintshire border.
Meanwhile, a review by advisor KPMG is ongoing that could lead to the sale of the company or alternative funding being secured. TEG said an announcement would be made in due course.
Shares in TEG were unchanged at 8p.