The feasibility of an alternative CO2 mitigation system and a methanol production process is investigated. The Carnol system has three components: (i) a coal-fired power plant supplying flue gas CO2, (ii) a process which converts the CO2 in the presence of He from natural gas to methanol, (iii) use of methanol as a fuel component in the automotive sector. For the methanol production process alone, up to 100% CO2 emission reduction can be achieved; for the entire system, up to 65% CO2 emission reduction can be obtained. The Carnol system is technically feasible and economically competitive with alternative CO2-disposal systems for coal-fired power plants. The Carnol process is estimated to be economically attractive compared to the current market price of methanol, especially if credit can be taken for carbon as a marketable coproduct.