This paper summarizes the results of research conducted at Argonne National Laboratory (ANL) to develop and design a novel method for the recovery of CO2 from flue gases. The basic process concept involves the combustion of a hydrocarbon fuel using a mixture of oxygen and carbon dioxide (or CO2 and H2O) rather than air as the oxidant, which results in a product stream that contains primarily CO2 and H2O. This stream is then dried and conditioned to meet the specifications of the end user. A slip stream of CO2 (or CO2 and H2O) is used as a diluent in the combustion chamber to maintain a flame temperature equivalent to the temperature that would otherwise be obtained using air as an oxidant. The cost-effectiveness of the process in recovering CO2 is dependent on the scale of the operation, the type of fuel used, the cost of oxygen, and the cost of capital. The sensitivity of the cost of the recovered CO2 to these variables is discussed, and a model for estimating the cost of CO2 recovered using the ANL process is presented.