Tens of thousands of new homes could be powered by the UK's first deep geothermal steam.
Geothermal Engineering Ltd (GEL) said drilling began two years ago on two wells that are 2.8 miles and 1.5 miles deep into granite with the temperature up to 200c.
And managing director Ryan Law described it as a historic day after they finally got 'steam on site' at its base near Redruth, Cornwall.
He said: "We have spoken about this over the years but we are finally producing the UK's first geothermal steam.
"We have steam on site with water coming from three miles underground.
"Today is the big moment for this project and a big moment for UK geothermal power."
The company also wants to build four new power plants in Cornwall to help power 45,000 homes by 2026.
This is subject to getting the necessary planning permission.
To develop each of the future plants, two deep wells will need to be drilled into the granite rock beneath each site.
Water is then pumped from the deepest well and the steam produced is then fed through a heat exchange at the surface.
Water is re-injected into the ground to pick up more heat from the rocks in a continuous cycle.
The extracted heat would then be converted into electricity and supplied to the National Grid.
Mr Law added: "The resource is gigantic we just need to prove we can tap into it."
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