MHI and The Kansai Electric Power Co., Inc. have been developing flue gas CO₂ recovery technology since 1990 as a measure against Global Warming. As a result of the research and development efforts which have now been carried out for more than eight years, the new energy-efficient solvents KS-1, KS-2 and KS-3, which are less corrosive and cause less degradation than those used previously, have been developed. In addition, a research has produced a new packing, KP-1, that can reduce the size of CO₂ absorbers and the horsepower requirements of flue gas blowers. On the pilot plant, which is located in Nanko Power Plant of The Kansai Electric Power Co., Inc., the pilot tests have been conducted by The Central Electric Power Council targeted for all utility companies in Japan and MHI since the fiscal year of 1995. This paper analyzes the cost of flue gas CO₂ recovery from flue gas by using our new technology for the purpose of EOR (Enhanced Oil Recovery).