A renewable power generation project is in the works in northern Saskatchewan that officials say will help First Nations and the province.

The biomass project, known as the Meadow Lake Bioenergy Centre, will use wood byproducts from a nearby mill to generate up to 36 megawatts of renewable, low-emissions power.

SaskPower and the Meadow Lake Tribal Council have signed a letter of intent and are working out the terms for a 25-year power purchase agreement.

The agreement is expected to be completed by the end of this year and the project is scheduled to be in service in early 2014.

It's the first project to come through the First Nations Power Authority, which was set up last spring to help First Nations develop power projects.