NORTHUMBERLAND — The former Groveton paper mill, closed by Wasau Paper in 2008, was named in a recent study as a potential “launch pad” for a cluster of industries organized around making full use of a native New Hampshire resource — wood chips.

The New Forest Economy Market Study preliminary draft was presented to the board of selectmen last month by Preston Gilbert, professor at the State University of New York’s College of Environmental Science and Forestry.

The technology involved, patented by SUNY, is environmentally friendly; pure hot water basically cooks the wood chips under pressure.

In a 48-hour process, chips release hemicellulose sugars and lignin to be refined into 19 — possibly more — bio-products, from food additives to bio-fuels and biodegradable plastics.

After processing and refining, the wood chips are still intact and can be used to make paper, furniture or pellets for home heating.

“Every step of the way, it’s making a profit,” Gilbert said. “Some of those profits are very significant.”

The processed chips also have the added advantage of being water resistant and, when used for fuel, burn hotter and cleaner than in their original form.

Gilbert said wood chips could also be burned to generate electricity. Exchangers would draw heat from the generators into greenhouses to grow fruit and vegetables 12 months a year.

North Country Council Inc., (NCIC) through the U.S. Department of Commerce/Economic Development Administration and the Neil and Louise Tillotson Fund, contracted with SUNY and Gilbert for the study.

In an email, Patricia Garvin, senior economic development planner at NCIC, said the market study is part of a series of activities “focusing on how public funding and private investment could be best used for redevelopment of the site, all with the goal of bringing good paying jobs back to the region.”

Selectman Michael Phillips said he has only glanced at the preliminary report but is familiar with its concepts from conversations with Gilbert.

“I think the notion of integrating green energy with other business is the best future for the town,” he said. “No little business can support all that infrastructure.”

The study suggests that the Groveton site, now owned by Groveton Acquisition, could become a launch pad, with the technology spreading to other “shuttered” paper mills and oil refineries. The process could also be added to existing paper mills to increase their profitability.

“We know the technology works; we do it every day on campus,” Gilbert said. “We just have to build it on a commercial scale now, which is what the next phase of the project is all about.”

The final study is due out next week. Public presentations will be held in October, although no specific dates have yet been set.

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Kristi Garofalo may be reached at kgarofalo@newstote.com.