A large amount of carbon dioxide (CO 2 ) is being produced from fossil fuel fired power plants and discharged into the atmosphere annually. As a result, the discharged CO 2 is now suspected to have caused the greenhouse effect and global warming problem. To overcome this CO 2 emission problem, there is great interest, especially in Canada, to capture carbon dioxide and utilize it as a flooding agent for the enhanced oil recovery (EOR) process. In the past few years, a number of feasibility studies and a few testing pilot projects on CO 2 extraction from power plants were performed. However, their results have showed that even though it is technically feasible to extract CO 2 from power plants, its cost is high for the EOR application in the current crude petroleum market. A major reason for the high cost is that the CO 2 extracting process requires a substantial amount of energy. This paper demonstrates howcogeneration concepts together with optimization design strategies would help to reduce the CO 2 production cost by utilizing low-pressure steams and waste-heats from various sections of the power generation processes for extracting CO 2 . The economics and technical feasibilities of these concepts are described and the practical implications given Western Canada's resources for EOR applications are discussed.