SEVERN Waste Services area director Philip Sherratt said he was "bitterly disappointed" at the decision to turn down the firm's bid to build the Kidderminster incinerator.
And he warned an appeal against the ruling was likely, but it would probably be "some weeks" away while the firm, which would have operated the waste-to-energy plant for Mercia Waste Management, considered its options.
A dismayed Mr Sherratt said he could not understand why the independent ENTEC report commissioned by Worcestershire County Council had been disregarded "so easily".
He said: "ENTEC recommended approval and it supported the environmental impact that was submitted with our planning application and the reports in this statement clearly demonstrate there are no major impacts on the environment as a result of this proposal.
"This includes traffic, health, visual impact and noise. I believe that this is the best solution for improving recycling and recovery and this is the best site, there is no alternative.
"SWS will seek legal advice before deciding on what happens next."
He added: "The council's refusal to accept the application is also against the recommendations of the Environment Agency.
"The agency has confirmed the bid meets the requirements of European and UK legislation, and it told us the development sets stringent operational conditions, technical requirements and emissions limit values to prevent or limit negative effects on the environment and human health."
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