More than 100,000 tonnes of waste would be sent to the plant

The Welsh Assembly made the decision after HLC, the company behind the scheme, changed their application.

The Portuguese firm wanted to build a waste recovery centre - which would house an incinerator - on the town's industrial estate.

But after months of public opposition and Wrexham councillors, a fresh application was submitted which did not include the incinerator.

Emissions

The company intends to replace the incineration element of the plant with a thermal treatment facility.

HLC chairman Horacio Luis Carvalho said this would reduce harmful emissions.

"We have listened to the concerns about incineration and are responding," he said.

Janet Williams from the Campaign for the Protection of Rural Wales said the inquiry cancellation would prove expensive for local pressure groups.

The plant would be built on Wrexham Industrial Estate

"I'm very concerned about the costs," she said.

"Community groups have raised money to have legal representation at this inquiry.

"We'll have to find further funding now - we have to research this new application."

The cancellation of the public inquiry, which was due to be held in June by an independent inspector on behalf of the Welsh assembly, means the new application will now have to go before Wrexham councillors again.

Wrexham AM John Marek said the scheme should not go forward in any shape or form.

"I have to say Wrexham people don't want this and I'm still very concerned that Wrexham County Borough Council doesn't see they don't want this."

The big issue is how we minimise our waste Eleanor Burnham AM

Council spokesman Paul Roberts said: "We can confirm that we have received a fresh planning application from HLC for a proposed waste to energy plant involving a gasification and pyrolysis system.

"As a result, we have been informed that the planned public inquiry beginning on June 10 relating to the original planning application has been cancelled. "

Pressure group TCC have campaigned vigorously against the incinerator.

However, spokeswoman Chris Pilsbury said they will thoroughly examine the new proposal before forming an opinion.

North Wales AM Eleanor Burnham said she could not understand why the assembly had deferred the inquiry.

"The big issue is how we minimise our waste," she said.

"I'm not sure why the Welsh assembly has called this off.

If given the go-ahead, the new plant could deal with 120,000 tonnes of waste each year.