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Deputy Spruce said the cost of kerbside recycling could not be justified by a decrease in residual waste of "only a few thousand tonnes".
BBC: Guernsey minister defends kerbside recycling costs
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This has drawn criticism from former PSD member Deputy Tony Spruce, who believes the reduction in residual waste is too small to justify the cost.
BBC: Guernsey minister defends kerbside recycling costs
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Representatives from the five councils involved in the project are due to discuss Sita's decision at a meeting of the North Wales Residual Waste joint committee in Llangefni later on Wednesday.
BBC: Cans
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Veolia Environmental Services was the other firm fighting to run the incinerator, and whose spokesperson said it believed it was "sympathetic with the local environment and represented a unique opportunity to use the residual waste to provide a secure source of sustainable energy and heat to the neighbouring Tata Steel steelworks - a major source of employment in the area".
BBC: Artist's impression of a Viridor plant in Cardiff
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Greenco Environmental collects the residual food from places like the Hyatt and blends that with wood and yard "waste" from tree companies, landscapers and municipalities.
CNN: Downtown Atlanta recycles self into a Zero Waste Zone