Abstract: A recycled exhaust gas cooling and condensate regulation system for a natural gas fired internal combustion engine driven co-generation plant, which allows efficient exhaust recycled gas combustion while maintaining lower head temperatures to reduce thermal NOx emissions and delivering increased process/utility heat to a proximate co-generation client, is provided. The recycled exhaust gas cooling and condensate regulation system has primary and secondary, air-to-gas, exchanger units, coupled in series, such that the first unit, designed to take exhaust gas exiting the engine, cools the gas to a first exhaust gas temperature effectively super saturating the water vapor in the cooled exhaust gas; and, the second unit, designed to handle lower inlet temperatures, condenses the water vapor and super cools the exhaust gas to <130 F. In one embodiment, the engine intake mixture including the exhaust gas is supercharged.