A method for producing steam while concurrently reducing emissions. The method includes combusting fuel and an oxidant stream having a high concentration of oxygen in a combustion zone having multiple combustion chambers and heat exchangers to produce a flue gas. The flue gas is subsequently cleaned in a dry flue gas cleaning chamber by contacting it with a dry adsorbent. In one embodiment, the method advantageously regenerates the dry adsorbent so that the dry adsorbent can be subsequently recycled back into the dry gas flue chamber.