A £70m biomass incinerator will be built in Greater Manchester despite residents’ health fears, the BBC reported.
Peel Energy’s plan to generate electricity by burning wood at a plant in Davyhulme was opposed by Trafford Council and hundreds ofresidents.
A three-week government inquiry was held after the firm appealed and the Environment Agency said it was satisfied it would not pose a risk.
Inspector David Richards said the development should go ahead.
Residents formed the campaign Breathe Clean Air Group (BCAG) and raised £20,000 for a legal fight against the plan.
They argued it would be too close to homes and result in pollutants being pumped into the air.
Trafford Council said it was “disappointed” at the government’s decision and plans to take legal advice before deciding whether to challenge it.
Construction could start next year and the plant may be up and running by 2016.