In order to sustain the current production capacity of conventional oil in Western Canada, enhanced oil recovery (EOR) technologies must be increasingly applied. Among these, CO2 flooding is a highly attractive alternative. A large amount of CO2 is being produced by coal-fired power plants in this region. The CO2 is currently discharged into the atmosphere and could be a major contributor to the greenhouse effect, which may lead to global warming. Thus, the concept of capturing CO2 and utilizing it as a flooding agent in EOR processes is currently generating much interest among oil, utility and coal companies. We demonstrate how cogeneration concepts, together with process-optimization strategies, help to reduce the CO2-production cost by utilizing low-pressure steam and waste heat from various sections of the power-generation process. Based on these concepts and strategies, results from this study show that the recovery cost of CO2 from a coal-fired power plant may range between $0.50 and 2.00/mscf. If the cost is approximately $1.25/mscf, the production cost of a barrel of incremental oil would be less than $18. Therefore, even at today＇s modest oil prices, there is room for profit to be made operating a CO2 flood with flue-gas-extracted CO2. The technical and economical feasibility of the concepts are evaluated and the practical implications for the Saskatchewan resources are discussed.