A power generating system having a hybrid gasification cycle, in which CO2 is recycled to a gasifier to be used as a gasification reactant and working fluid. The power generating system includes a source of fresh, pure oxygen, a gasifier, a particle separator arranged in flow connection with the gasifier, a syngas combustor, a gas turbine arranged in flow connection with the syngas combustor, a steam generator arranged in flow connection with the outlet of the gas turbine, and a gas compressor system which discharges a stream of compressed exhaust gas. A first portion of the stream of compressed exhaust gas is conducted to the gasifier to control the temperature in the gasifier, to provide CO2 and steam for gasification, and to decrease the demand for fresh, pure oxygen therein.