A Veolia spokesperson said: "Waste reduction, reuse and recycling operations are the first priority for our integrated contracts after which the next stage is energy recovery, whose primary purpose is reducing waste to landfill.
"In 2017 the Council took the opportunity to review its Contract in light of the significant changes to the services over the term of the Contract including the expansion of the recycling services. Part of the review included the funding of the Contract as this sits with Veolia and is therefore not a Public Finance Initiative (PFI).
"A combination of a new recycling collection model developed with Sheffield City Council and energy recovery has resulted in one of the highest landfill diversion rates of all cities. The Energy Recovery Facility also powers the award-winning District Energy Network which is poised for further expansion and provides heat to hospitals, Sheffield University, leisure facilities and households across the city.
"The strategy of locating the facility in the city, minimised the collection fleet's road miles and supported district heating and we are now also taking an environmental lead by trialling electric vehicles fuelled by the plant.
"Since 1990, the sector has reduced its carbon emissions by 63%, a record matched by few others and we will continue to support new technologies, such as carbon capture, with the aim of further improving environmental performance."