Pueblo could soon be home to a battery storage system designed to hold solar- and wind-generated energy on the site of Xcel Energy's soon-to-close Comanche 3 power plant.

The Comanche 3 coal-fired power plant is slated to close Dec. 31, 2030, which will mark an end to the use of coal power plants in Colorado. The new battery storage system would feature a bunch of individual containers holding iron-air battery technology inside them, said Kevin Coss, senior media relations representative with Xcel Energy.

"It would be covering a 5-acre site and as part of that 5 acres there is a substation which collects and distributes that energy," Coss said. "The energy would be coming from nearby solar (farms.)"

Xcel has partnered with Lightsource BP to build its second solar farm in Pueblo. Sun Mountain Solar will include 640,000 solar models on 1,700 acres of land southeast of the Bighorn Solar farm, which provides power for the EVRAZ Rocky Mountain Steel Mill.

Form Energy's website indicates it has created the iron-air battery system that will hold 100 hours worth of electricity "at system costs competitive with legacy power plants." The company could help energy providers like Xcel expand its access to reliable, low-cost renewable energy generated in Colorado.

As part of Xcel's transition to renewable energy, the 10-megawatt storage facility could be online as soon as 2025.

"This is like a pilot-scale system, so one of the intents is to see how well it works," Coss said. "The batteries generally bring the most value through charging and discharging from renewable resources, particularly when those renewables would otherwise be curtailed."

The project still has to go through regulatory approval. If approved, it could generate an estimated 15-20 local construction jobs.

The Colorado Public Utilities Commission approved Xcel Energy's plan to close Comanche 3 by the end of 2030. As part of a settlement agreement, the utility company also agreed to pay Pueblo County a “community assistance payment” equal to current property taxes of about $25 million annually until 2040, when the plant originally was scheduled to close.

That payment could be offset by tax-generating new energy facilities. If the company builds new facilities, the property taxes from the new projects could reduce the overall amount the utility is obligated to pay under the settlement.

"The results of the upcoming Colorado energy resource solicitation may lead to new solar projects near Comanche that will drive more local renewable energy in that area," Coss said.

More Xcel news:Tax revenues to keep flowing to Pueblo 10 years after Comanche 3 coal plant's closure

“We’re on track to reduce our electric system carbon emissions 80% by 2030 and to deliver carbon-free electricity by 2050," said Bob Frenzel, chairman and president of Xcel Energy. "As we build more renewable energy into our systems, our partnership with Form Energy opens the door to significantly improving how we deliver carbon-free energy so that we can continue to provide reliable and affordable electric service to our customers well into the future.”

Form Energy and Xcel Energy collaborated on extensive modeling for the project. Xcel will be able to store large amounts of renewable energy on the new battery system.

The analysis of the system also demonstrated that the battery technology will strengthen the grid against normal day-to-day, week-to-week and season-to-season weather variability by keeping energy available during extreme weather events such as severe winter storms and polar vortex events.

"We’re very pleased to work with the Xcel Energy team to maximize use of its renewable generation by providing a technology solution that will ensure their customers benefit from reliable and cost-effective service year-round," said Mateo Jaramillo, chief executive officer and co-founder of Form Energy. “This partnership highlights Xcel Energy’s commitment to ensuring grid resiliency and reliability, energy security and access to low-cost clean energy every day of the year.”

More on Xcel in Pueblo:Op-ed: Xcel agreement provides a positive pathway to a coal-free future

Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via Twitter at twitter.com/tracywumps.

This article originally appeared on The Pueblo Chieftain: New power storage facility could be built in Pueblo by Xcel Energy