The plant would provide up to 20 megawatts of electricity to the El Paso Electric grid. The base purchases its electricity from the Texas-based utility.
Air force officials have signed an agreement with New Generation Biomass that allows the company access to about 80 acres of base property to determine the land's suitability for the proposed Black Bear Biomass Energy Facility.
Officials say they are working with New Generation Biomass to review any potential effects of the power plant, including environmental effects and energy benefits.
If the project moves forward, base officials say there will be opportunities for public comment.