JOHN DAY, Ore. (AP) -- The Ochoco Lumber Co. is getting $4.9 million in federal stimulus money to build a wood pellet fuel plant.

Gov. Ted Kulongoski's office said the project allows 80 full-time jobs to be retained and will create 11 new ones.

The plant will produce pellets for bulk delivery to fuel pellet boilers in hospitals, schools and other commercial and government buildings in the Pacific Northwest.

The stimulus money will help the company purchase and install a new drying system, two pellet-making machines and the infrastructure necessary for the boiling and drying processes. The governor's office said the operation may be running by the end of next summer.

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