An industrial demonstration unit using natural gas as a heat source was built to calcine the by-products of MgO wet flue gas desulfurization from power plants; influencing factors on the SO content in calciner gas were comprehensively analyzed; and an advantageous recycling condition of MgO and SO from by-products was summarized. Results showed that the SO content in the calciner gas was increased by more than 10 times under a lower excess air coefficient, a higher feed rate, a lower crystal water in by-products, and a higher feed port position. For the tests conducted under the excess air coefficient above and below one, the effect of the furnace temperature on the SO content in the calciner gas was reversed. Results of activity analysis indicate that particles of MgO generated under the calcination temperature of 900-1,000°C had a high activity. In contrast, due to the slight sintering, MgO generated under the calcination temperature of 1,100°C had a low activity. To recycle SO as well as MgO, a temperature range of 900-927°C for TE103 is proposed. These studies will prompt the desulfurization market diversification, reduce the sulfur's dependence on imports for making sulfuric acid, be meaningful to balance the usage of the natural resource in China, and be regarded as a reference for the development of this technology for other similar developing countries.