Oxyfuel combustion can make a valuable contribution to improving the carbon balance of fossil fuel combustion. With this process, coal is combusted in an atmosphere consisting of pure oxygen and carbon dioxide (CO₂). This purer mixture burns at a higher temperature than natural air, thus increasing the efficiency of the combustion process.

Additionally, the resultant flue gas is not diluted by nitrogen normally present in air, but primarily consists of CO₂ and water vapour. The flue gas stream is therefore smaller and easier to handle.

This vapour is easily condensable, leaving a highly concentrated CO₂ stream. The CO₂ can then be compressed and stored.