The digester, for the production of renewable energy and fertiliser is to be located at Coxtown.
The council had refused permission for the digester having received a number of objections but that decision was appealed to An Bord Pleanala:
One resident pointed out the facility was close to residential property and was within 600 meters of two primary schools and Monreagh Church.
It was stated that odors and emissions were of great concern and could damage health. Concerns were also expressed about the risk of vermin and noise pollution.
The Loughs Agency said its principle concerns with the development were in relation to pollution and a number of recommendations were made to prevent an occurrence.
The Department of Arts, Heritage and the Gaeltacht also made a number observations and recommendations in relation to archaeology.
These included that a suitably qualified archaeologist be employed to carry out pre-development testing at the site.
Having considered the matter, An Bord Pleanala ruled that the development can go ahead subject to a number of conditions.