Sept 22 (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.

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.

U.S. District Judge Royce Lamberth said during a court

hearing in Washington that 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government assurances that were withdrawn with little

explanation, 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."

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.

Orsted did not immediately respond to a request for comment.