Disclosed herein is a method for generating “clean” electricity from carbonaceous material, and producing high-pressure CO2 which can be easily sequestered or utilized for a beneficial purpose, such as fuel production. This method utilizes a reformation process that reforms carbonaceous fuel with superheated steam into a high-pressure gaseous mixture that is rich in carbon dioxide and hydrogen gas. This high-pressure gas exchanges excess heat with the incoming steam from a boiler. Once cooled, the high-pressure gas goes through a CO2 separator, after which the CO2-rich gas is sequestered underground or beneficially re-used. The remaining hydrogen-rich gas is used to generate power in a power generation subsystem, such as a gas turbine or a fuel cell. Therefore, carbon-free power is produced from coal, biomass, natural gas, or another carbon-based feedstock.