To reduce the emission of CO2 into the atmosphere, two schemes are proposed. The first one is a coal-fired MHD-steam combined power generation system where coal is burned with oxygen rather than air, the obtained high temperature is utilized for the MHD generator and the CO2 is liquefied and recovered. The cycle efficiency with CO2 recovery is estimated to be 45.3% (HHV). Another scheme is a combination of liquid fuel production and MHD-steam combined system, where the CARNOL processes of methanol production are used to reduce CO2 emission from sectors where collection of CO2 is otherwise impossible, such as highly dispersed heat engines and small scale fuel users. The carbon produced from the CARNOL processes is used as a fuel for the MHD-steam combined cycle, and CO2 is liquefied and recovered. 56.2 kg/sec of methanol is produced while the net power delivered to the grid is 370.7 MW, 42.2 kg/sec of CH4 is consumed.