Government officials say they took the decision to axe the cash they had allocated to the Lynn incinerator because they don’t believe it is needed to help meet national waste targets.
The £169 million grant was first allocated to the project in January 2012, despite fierce opposition.
But a Department for Environment, Food and Rural Affairs (DEFRA) spokesman told the Lynn News: “We are investing over £3.5 billion in waste infrastructure projects to reduce the amount of waste sent to landfill, promote recycling and stimulate economic growth.
“The amount of waste sent to landfill is at its lowest level while recycling rates have been increasing year on year and are now the highest on record.
“Given that we expect to have sufficient infrastructure in England to enable us to meet the EU target of reducing waste sent to landfill and considering all other relevant factors, the decision has been taken not to fund the Norfolk project.”