(Corrects company name in headline)
By Jan Wolfe
(Reuters) -A federal judge on Monday granted a request by Danish offshore wind developer Orsted to restart work on the nearly finished Revolution Wind project, which President Donald Trump’s administration halted last month.
Orsted’s U.S.-listed shares were up nearly 9% at $11.60 following the ruling by U.S. District Judge Royce Lamberth.
The ruling is a legal setback for Trump, who has sought to block expansion of offshore wind in U.S. waters. Attorneys for the administration had argued that the project, located off the coast of Rhode Island, failed to comply with some conditions of its permit.
At the end of a two-hour court hearing in Washington, U.S. District Judge Royce Lamberth issued a preliminary injunction that blocks the Trump administration from enforcing an order it issued last month to halt construction.
Lamberth, a senior judge appointed by Republican President Ronald Reagan, said the Trump administration had offered contradictory reasons for issuing its stop work order, and that the explanations offered weeks after the halt were “the height of arbitrary and capricious” government conduct.
He also said Revolution Wind had reasonably relied on government assurances that were withdrawn without due process, imperiling a $5 billion investment.
“If Revolution Wind cannot meet benchmark deadlines, the entire project could collapse,” Lamberth said. “There is no doubt in my mind of irreparable harm to the plaintiffs.”
“Revolution Wind will continue to seek to work collaboratively with the U.S. Administration and other stakeholders toward a prompt resolution,” an Orsted spokesman said in a press release.
“Revolution Wind will resume impacted construction work as soon as possible, with safety as the top priority,” the spokesman added.
Orsted and its joint venture partner Skyborn Renewables had asked for a preliminary injunction in a lawsuit they filed earlier this month challenging the U.S. Interior Department’s stop-work order.
Interior Department officials were not immediately available for comment.
Revolution Wind is located 15 miles off the coast of Rhode Island and, once completed, is expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut.
(Reporting by Jan Wolfe and Valerie Volcovici in Washington and Nichola Groom in Los Angeles; Editing by David Gregorio)
