An inquiry concluded that although public concern was sincere over the £43 million facility, proposed for the Cromarty Firth Industrial Estate at Invergordon, it did not warrant the refusal of consent.
Combined Power and Heat (Highlands) Ltd submitted an application for the incinerator in Invergordon, which would be capable of providing heat and power for 10,000 homes.
But in August 2009, against the advice of planning officials, it was refused as councillors recognised concerns for traffic on the A9 and that emissions could cause health problems.
However, permission was then granted by Ministers in 2010, following an appeal.
A Court of Session challenge by local landowners followed and judges quashed the planning consents, leading to a public inquiry being called.
Scottish Government reporter Richard Dent has now completed the inquiry report and has concluded the facility can be built following a fresh environmental impact study.