SPECIAL FEATURES: 22,000 ton per year production capacity, American Recovery and Reinvestment Act project, and 5,000 man-hours self-performed


Malheur Lumber Pellet Plant


JH Kelly was selected as the contractor to partner with Malheur Lumber for the following scopes of work: concrete and building, equipment installation, electrical and controls. JH Kelly self-performed the majority of this work.

Malheur Lumber received a $4.8 million grant for the construction of a 22,000 ton per year compressed wood and pellet plant. The grant opportunity was made possible by the U.S. Forest Service and funded by the American Recovery and Reinvestment Act. Malheur National Forest officials worked in conjunction with Business Oregon staff to make the pellet fuel project possible.

The Recovery Act grant will allow Ochoco Lumber, doing business in John Day as the Malheur Lumber Company, along with its partner Bear Mountain Forest Products, to produce pine fuel pellets for retail sale in the Pacific Northwest as well as Bear Bricks, a compressed fuel product.

The new facilities will utilize biomass harvested from private lands as well as nearby U.S. Forest Service and Bureau of Land Management lands. The plant will produce pellets for bulk delivery to fuel pellet boilers in hospitals, schools and other commercial and government buildings in the region. The company also hopes to significantly increase production by providing fuel pellets to large industrial users such as utility companies.

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821 Third Avenue / PO Box 2038 / Longview, WA 98632T 360.423.5510 / F 360.423.9170 /