The application describes a system and method for highly efficient energy production. The system includes an air source configured to supply air flow; fuel source, configured to supply a stream of fuel; a combustion chamber configured to burn a fuel stream and an air stream in the presence of a recycled stream to form a stream of combustion products of more than 50 mol% consisting of N, the air source and the fuel source being arranged to supply an air stream and fuel stream in such the ratio that the combustion chamber is mainly stoichiometric combustion with an excess of oxygen up to about 5%; a turbine made with the possibility of expanding the flow of combustion products; and a heat exchanger configured to receive at least part of the output stream from the turbine and use this part of the output stream to heat the air stream and at least part of the recycled stream formed from the output stream.
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