The planning permission is for three wells to be drilled at United Downs industrial estate near Redruth.
The power plant will produce 10MW of electricity to be fed into the national grid, and 55MW of renewable heat energy that could be used for the local community.
Geothermal Engineering won a £1.47m (approximately $2.3m) funding from Department of Energy and Climate Change for the power plant in December 2009 and it will now use the funding to begin the drilling process.
The plant is expected to be operational by 2013 and provide enough electricity to power approximately 20,000 homes.
