SUMMARYIt is becoming more important to realize CO 2 -capturing power generation systems (PGSs) for drastically decreasing an amount of CO 2 emission into the atmosphere. However, net power generation efficiency (NPGE) of a CO 2 -capturing system has been considered to be greatly deteriorated, since capturing CO 2 requires extra energy. This paper proposes a new CO 2 -capturing PGS that has a high-efficient NPGE by utilizing waste heat from factories. As an example of a waste heat, exhaust gas with temperature 2001C from refuse incinerator plants is adopted. In the proposed system, the temperature of saturated steam produced by utilizing the waste heat is raised by combusting fuel with the use of pure oxygen in a combustor, and is used as the main working fluid of a gas turbine PGS. It is estimated that the proposed system has a fuel-to-electricity NPGE of 59.3%, when turbine inlet temperature (TIT) is assumed to be 10001C. The economics of the proposed system is also evaluated and the CO 2 reduction cost is estimated to be small; 4.16 U.S. $ t À1 CO 2 compared with 32.1 U.S. $ t À1 CO 2 for a conventional steam turbine PGS. It is shown that CO 2 -capturing is not cost consuming but becomes to be profitable owing to improved power generation characteristics, when its TIT is increased from 1000 to 12001C.