State regulators have revoked permits originally granted to South Sioux City’s Big Ox Energy plant.
The biogas facility has been plagued with operational problems and odor complaints.
Several homeowners have filed lawsuits against the company and South Sioux City, saying the odors and gases backed up into their homes shortly after the plant opened.
An official who presided over the state Environment and Energy Department case said Big Ox Energy had continually failed to comply with state regulations.
The Denmark, Wisconsin-based company has 30 days to appeal the ruling.