The firm, which is responsible for financing the Las Brisas power project on the Texas Gulf Coast, is dissolving and will not continue to seek necessary permits for the project, reports the Associated Press.
The company has so far struggled to obtain necessary permits required to start building the $3bn coal-fired power plant.
In July 2012, an air permit issued by the state has been struck down by a judge saying regulators failed to sufficiently show how the power plant would meet air pollution standards.
In addition, the US Environmental Protection Agency was reportedly worried that the coal-fired generating station would bring more pollution to the area than is federally allowed.
Chase Power chief executive officer Dave Freysinger remarked that regulatory "obstacles" eventually led to the decision to halt plans for the power plant located in the city of Corpus Christi.
"Chase Power … has opted to suspend efforts to further permit the facility and is seeking alternative investors as part of a plan of dissolution for the parent company," a company statement noted.
