Oxy-fuel technology uses effectively pure oxygen for fossil fuel combustion in order to obtain a highly concentrated CO2 stream, suitable for direct compression and sequestration. It is an effective technology to reduce greenhouse gas emissions to the atmosphere from large point sources such as power generation plants. Oxy-fuel FBC technology has the combined advantage of producing high CO2 concentration flue gas and allowing excellent fuel flexibility. In addition, with external cooling of the recirculated solids, the flue gas recirculation ratio can be reduced. CETC-Ottawa has carried out oxy-fuel fluidized bed combustion with flue gas recirculation on its modified mini-CFBC. The mini-CFBC has an internal diameter of 100 mm and internal height of 5000 mm. Both bituminous and sub-bituminous coals were fired. Limestone was premixed with coal and fed to the mini-CFBC. Recirculated solids were cooled in the return leg of the mini-CFBC. The bed temperature was controlled at about 850 degrees C, while the oxygen concentration in the primary gas was similar to 25% and in the secondary gas was similar to 50%. With flue gas recycle, the CO2 concentration in the flue gas reached 82-90%. Sulfur capture efficiency and CO and NOx concentrations were also measured and were all at acceptable levels. The transition from air firing to oxy-fuel firing was a fast and relatively smooth process, and operation of the mini-CFBC under oxy-fuel firing conditions was similar to that of air firing.