A flue gas stream processing system includes a fuel reactor for combusting a fuel to generate a flue gas stream including water vapor, carbon monoxide and carbon dioxide. The system includes an oxidation catalyst downstream of the fuel reactor, the oxidation catalyst configured to receive the flue gas stream and oxidize the carbon monoxide to form a carbon dioxide rich flue gas stream, and a processing unit to liquefy carbon dioxide in the carbon dioxide rich flue gas stream and generate an exhaust gas.