Client Energy Works has confirmed its contract with M+W Group subsidiary MW High Tech Projects UK Ltd has been terminated on the Energy Works scheme.
M+W won the engineer, procure and construct contract in 2016 and work was due to be completed in 2018.
Energy Works told the BBC: “It’s a decision that we have taken with great reluctance.
“The decision comes after, amongst other things, significant delay to the works.
“We will implement shortly a recovery plan to continue with the works.
“This move guarantees the future of the plant, and we look forward to continuing to process waste and produce renewable energy for the people of Hull.”