Abstract: A low BTU, low volatile content, low carbon and high ash fuel is combusted in a combined shaft kiln combustor and fluidized bed combustor to generate heat which is converted to useful energy. The fluidized bed combustor is mounted vertically above the shaft kiln combustor. A venturi is provided in a passageway connecting the shaft kiln combustor and the fluidized bed combustor to produce a gaseous stream moving at a velocity sufficient to separate finer particles from the low BTU, low volatile content, low carbon and high ash fuel so that the coarser particles are burned in the shaft kiln combustor and the finer particles are burned in the fluidized bed combustor.