A turbine system is provided. The turbine system includes a compressor configured to compress ambient air and a combustor configured to receive compressed air from the compressor, and to combust a fuel stream to generate an exhaust gas. The turbine system also includes a turbine for receiving the exhaust gas from the combustor to generate electricity; wherein a first portion of the exhaust gas is mixed with the ambient air to form a low-oxygen air stream, and wherein the low-oxygen air stream is compressed using the compressor, and is directed to the combustor for combusting the fuel stream to generate a low-NOx exhaust gas.