Norway-based Statoil has abandoned a proposed $120m wind project, which is being constructed off the coast of Maine in US.
As a result of changes in terms made by the state and delay in schedule of the project, the company has decided not to proceed with the project.
The company intends to focus on a project in Scotland, while continuing to explore the US offshore wind market.
Maine Renewable Energy association executive director Jeremy Payne was quoted by huffingtonpost.com as saying that the exit of Statoil is a sad news for Maine, as it is looking to attract investment.
"Anytime you have a huge international player that was looking to Maine as a potential host for its investment and it shifts course, that calls into question whether this is a hospitable place for any type of investment," Payne added.
In January, Statoil hadreceived state regulatory approval to build four wind turbines 12 miles off the coast, as part of its 20-year contract.
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By GlobalDataIn July, the company had decided to put the project on hold, after Republican government Paul LePage signed legislation to reopen the competitive bidding process, to permit the University of Maine to submit a proposal.
LePage has opposed Statoil’s project, as it is expected to push around $200m in costs onto ratepayers.
Governor’s energy office director Patrick Woodcock said, "At this point, we still want to move forward with Maine’s offshore wind industry in a manner that makes sense for ratepayers."
Currently University of Maine’s proposal is the only project being considered for a state contract, while its umbrella company Maine Aqua Ventus said that it is committed to develop Maine’s offshore wind potential.
