Abstract: A combined heat and power (CHP) system and a method of operating is provided. The CHP system includes an oxygen-air separation device. A combustion chamber has an inlet coupled to the oxygen-air separation device. The combustion chamber receives an expanded heated CO2 working gas for combustion of solid fuel and generates a CO2 exhaust gas. The expanded heated CO2 working gas comprising at least a portion of the CO2 exhaust gas. A heat exchanger receives combustion gases and outputs a cooled CO2 working gas. A turbine is provided having a compression section and an expansion section, the compression section configured to receive and compress the cooled CO2 working gas and to direct it to the heat exchanger. The turbine receives a heated CO2 working gas at the expansion section and expands the heated CO2 working gas. In an embodiment, CO2 products may be generated from the system.