Montville - Officials from the parent company that owns Montville Power LLC believe that a plan to convert one of its generation units into a biomass system would bring jobs to the town at a time when AES Thames is closing.

About three years ago, New Jersey-based NRG Energy Inc. presented its plan to the town to convert the smaller of Montville Power LLC's two generation units from a natural gas and oil-based unit to one that burns clean wood.

The approximately $100 million project has stalled as NRG has been unable to find a company to purchase the power. An NRG spokesman said there is no state regulatory process in place under which utility companies could purchase the power that would be produced by the biomass system.

Last week, Mayor Ronald K. McDaniel Jr. said AES Thames, a coal-fired power plant and the town's largest taxpayer at more than $1.2 million, would close for good after a company purchased the plant with plans to dismantle and decommission it.

"It's a shame about AES Thames. You never want to see a plant shut down. That's really a last resort," said Jonathan Baylor, NRG director of project management. "We can really do something about it. It just takes action from the state to make it happen. We know the policies are in place. We want a push to see it go through."

NRG spokesman David Gaier said the biomass system conversion would create between 75 and 150 construction jobs during the year the project is anticipated to take.

Thirty to 35 full-time jobs would also be created at the plant, and 200 other jobs would be created in forestry and logistics/shipping, the company says. The new system would annually use up to 400,000 tons of clean wood, which would come from forests in a 100-mile radius.

It would also provide up to 42 megawatts and have the capability to go to 82 megawatts by using natural gas, Baylor said. A megawatt serves about 1,000 average homes.

McDaniel said that for the plan to go forward, the state Department of Energy and Environmental Protection must issue a request for a proposal for renewable energy sources. NRG would then go through a competitive bid process and could then secure the financing it needs for the biomass system upgrade.

Gov. Dannel P. Malloy said Wednesday during a visit to the town that he has had discussions with NRG officials on the biomass system since the beginning of his administration. He said the project would be a way for the town to cope with the loss of AES Thames, which he called an antiquated factory.

"It's an exciting project that would in part offset the jobs that were lost," Malloy said.

During a public hearing process, citizens voiced concerns that the biomass system would increase truck traffic and the potential for air and noise pollution. But McDaniel said NRG has addressed all of the concerns and the company has gone through other steps.

The Connecticut Siting Council last year determined the biomass system would not hurt the environment, and the DEEP has issued an air permit for the project, Baylor said.

The company also has an agreement with the town to install sidewalks in the area of the plant on Lathrop Road.

"The citizens would understand, in light of everything else that has happened, this is something we need to have," McDaniel said.

Moving forward on the biomass system would also help meet a state mandate that 20 percent of energy come from renewable resources by 2020.

Considering the jobs it would add and the fact that NRG could sell more power, McDaniel called the project a win for all sides.

"It would help create jobs. It would help create an investment in the town. And it would help NRG sell more power to the grid," McDaniel said. "In light of all that, I'm very supportive of the project. Right now, it's a matter of putting pressure on the (governor's) administration."

jeff.johnson@theday.com