The American waste processing company which is contracted to run the stalled Poolbeg incinerator in Dublin will not rule out legal action against Ireland if the project is shelved.
Covanta says it has spent tens of millions of euro on the project so far and added that up to 600 jobs would be lost if the project did not go ahead.
At a meeting in Dublin this morning, company representatives said they were disappointed that the relevant authorities had not stepped in to give the final green light.
All that remains to be done to resume construction on the site is a foreshore license.
Minister for the Environment John Gormley has said he would prefer mechanical biological treatment to deal with the waste problem, but Covanta countered that the waste-to-energy site is more enviornmentally friendly.