PORTLAND, Maine (AP) — A University of Maine-led effort to build an offshore wind pilot project was dealt a significant blow Wednesday when it failed to a win a competition for a $47 million federal grant, expected to be a key source of funding.

The U.S. Department of Energy’s decision to pass over the Maine Aqua Ventus project for the grant means an uncertain future for the proposal, which would put a two turbine, 12-megawatt project off the coast of Monhegan Island, and the goal of making Maine a hub for offshore wind development.