ECOISLAND Partnership Community Interest Company has gone into voluntary liquidation.
Administrators for the Isle of Wight organisation wrote to creditors today (Tuesday) to inform them of the decision.
The CIC, run by chief executive David Green, was launched in February 2011, with the ambition of making the Isle of Wight energy self-sufficient by 2020.
It had worked with several Isle of Wight organisations as well as international energy and technology companies.
In June 2012 it launched an energy service company with plans to work with Maingate on providing cheaper energy for Islanders, however the project failed to get off the ground.
A statement issued today on behalf of Ecoisland said: "It is with deep regret that the Ecoisland Partnership Community Interest Company has been forced to close its doors and wind up its affairs on the Island.
"This action follows extensive funding rounds and a significant number of re-finance packages that unfortunately have not come to fruition. The existing partnership funding structure was hit badly by the current economic climate and the new energy company initiative, in spite of numerous funding streams in the pipeline has not come online in time to provide the CIC with the necessary funding it required.
"There is no positive spin to put on this; the vision of the Island as a sustainable region was clearly a valuable one but the necessary ongoing funding streams have not consolidated around the plan.
"It is clearly not for want of effort or initiative on behalf of the whole team and all the supporters that the plan has not moved forward. It was hoped that a recent re-capitalisation plan would resolve things but it has not.
"Whilst it was hoped that the Ecoisland Partnership CIC would be able to lead the sustainability developments on the Island for a number of years to come, clearly without on going funding this will not be the case.
"The vision however is still a good one and the director hopes that the momentum that has been generated can still be maintained. "