Many technologies are now being explored to permit the combustion of fossil fuels while achieving CO2 capture in a state suitable for compression, transporting, and sequestration. Among the chief contenders are processes in which the fuel is first decarbonized, usually by gasification, followed by the use of a shift reaction to produce pure H2; post‐combustion capture, in which the CO2 is removed from the flue gases either at high temperatures (e.g. carbonate or Ca looping) or at near‐ambient temperatures (e.g. amine scrubbing); chemical looping in which the fuel is converted in the presence of a solid oxide carrier, thus producing a stream of gas consisting primarily of CO2 and H2O; and finally, oxyfuel combustion in which the fuel is burned in a stream of pure, or nearly pure, oxygen. The latter technology is already being investigated for application with pulverized fuel or coal, but more recently, the possibility of using oxyfuel combustion with circulating fluidized beds has been receiving increasing attention. There is already a 30 MWth demonstration unit operating in Spain, with plans to build a 300 MWe plant. This perspective describes the current status of oxyfuel research and development. © 2013 Society of Chemical Industry and John Wiley & Sons, Ltd