Ayrshire Power has withdrawn its planning application for a new multi-fuel power station with carbon capture and storage technology at Hunterston, Scotland.
The company said the decision was due to uncertainty surrounding the ability to secure the necessary financial investment to build the power station.
Ayrshire Power will withdraw its application from the current CCS demonstration project funding competitions.
Ayrshire Power project director, Muir Miller, said the company cannot proceed with the "significant risk" posed by the lack of funding for the station, and voiced concerns that the project could not be built in the necessary timescale following the grant of consent.
"We remain convinced that this project could give Scotland a superb opportunity to lead the development of full-scale carbon capture and storage, which will be vital in reducing global emissions and accords with Scottish Government policy to cut carbon emission and back-up intermittent renewable energy supplies," said Miller.
"The opportunity to develop a CCS cluster on the west coast of the UK that could store over one billion tonnes of carbon dioxide by 2050 remains an exciting prospect."
In November, North Ayrshire Council rejected the firm's Hunterston plans after more than 20,000 objections were lodged.