Enhanced oil recovery (EOR) in which CO₂ is injected into reservoirs in order to increase crude oil production has been commercialized mainly in the US. By utilizing flue gas CO₂ recovery technologies, CO₂ recovered from the flue gas of power generation plants can be applied to EOR. When a flue gas CO₂ recovery plant is used as a source of CO₂ for CO₂ EOR, the plant comprises a large part of the total investment, and CO₂ recovery costs greatly affect oil recovery cost. The comprehensive economic studies are made for CO₂ recovery plant in application of EOR projects based on various parameters which include capacity of CO₂ recovery plant, utility cost, pipeline cost and any other operational requirements. This paper focuses on some of these economic study results to identify which parameters impact on CO₂ recovery cost. Consideration is also given to the selection of flue gas sources and plant locations with the aim of further minimizing recovery costs.