A historic $29.5 million federal grant will not be awarded to the Port of Albany for a offshore wind tower manufacturing project as expected.

Officials with the port announced Wednesday it had withdrawn its application for the U.S. Maritime Administration funding to assist constructing the $357 million project on Beacon Island. Delaying the application process will allow more time for a state and federal review of various pending permits and environmental assessments needed to begin the work.

Construction on the project, to include four new buildings, a wharf, bridge and internal roadways, was ordered to stop this spring after contractors improperly cleared trees on the port's 80-acre site this spring without securing all the required permits — coming under fire from the U.S. Environmental Protection Agency for clearing the vegetation while neglecting a review process mandated under the National Environmental Policy Act.

MARAD commenced a review of the previously announced award this spring, warning it could be in jeopardy.

“The Port of Albany is so proud to have this unique opportunity to help support New York State in reaching their groundbreaking climate goals and creating new job opportunities for our region,” Port of Albany CEO Rich Hendrick said in a prepared statement. “It is because of the vast outpouring of support in our community that the Port is confident that we will bring this project to fruition.”

Representatives with MARAD did not immediately return a request for comment Wednesday.

Hendrick and port officials made the decision to rescind the grant application with project partners to give the U.S. Army Corps of Engineers, the National Marine Fisheries Service and federal agencies appropriate time to complete their comprehensive reviews.

"Such action was done in order to provide further clarity on a timetable for the commencement of construction on site," according to a statement from the port.

Construction ceased on the site in April.

The offshore wind project is expected to create 500 jobs from unions, trades and labor divisions during construction, and an estimated 500 permanent positions when the plants are functioning.

About 2 million tons of fly ash, a byproduct of burned coal, remains at the Port of Albany that was dumped at the port decades ago, including on Beacon Island.

"Two centuries ago, Beacon Island was built up by placing fill above the river level," according to a statement from the port Wednesday. "There was a period where the property was used to dispose coal ash, which has been covered, until the switch from coal to oil. Since then, the island has remained untouched and undeveloped."

At the August Albany Port District Commission, port officials said ash and environmental concerns will be addressed during site development.