A new process is proposed for CO2 removal from flue gas using the reaction CaO + CO2 <-> CaCO3. This process consists of two fluidized bed reactors connected by solid transportation lines. In one reactor (absorber), CO2 in the flue gas is captured by CaO at 873 K and the produced CaCO3 is transported to another reactor (regenerator), in which CaCO3 is decomposed to CaO at 1223 K. The produced CaO is transported to the absorber again. The heat of decomposition in the regenerator is supplied by feeding coal and pure oxygen, thus the flue gas from the regenerator is high purity CO2 (>95%, dry base). In this work, a conceptual study is conducted for material balance, heat balance, power generation, and power consumption for O-2 production and CO2 liquefaction (compression). Also, a kinetic study of CaO + CO2 --> CaCO3 was conducted to design the absorber. The required bed height of the absorber was calculated by use of a bubbling fluidized bed model. The bed height was found to be determined not by the chemical reaction rate but by the arrangement of heat transfer tubes for heat recovery.