GORHAM – Plans for a much anticipated power plant in Gorham have been scrapped. American National Power has abandoned plans for a $400 million, natural gas-powered plant, according to Gorham town officials.

“I wouldn’t say we were surprised by the decision, but we certainly are disappointed,” said Town Manager David Cole. “This was a very good potential development with high value associated with it.”

Town officials had planned to use the property taxes from the plant to pay for road projects and an expansion of the nearly full Gorham Industrial Park. American National Power was expected to pay $6 million a year in property taxes, in addition to a $6 million gift to the town over three years.

Guy Marchmont, vice president of American National Power, said there was no one reason for his company to pull out of the project.

“It was a combination of reviewing our priorities for the next year, looking at the economics of the project, the timing of the project” and other factors, he said.

The company began looking at a 262-acre site along Route 25 more than three years ago. Around the same time, Calpine Corp. was planning a gas-fired power plant in neighboring Westbrook.

Both companies were taking advantage of new natural gas pipelines in the area, but it was unclear that there would be enough demand for the electricity.