A method of combusting pulverized coal by mixing the pulverized coal and an oxidant gas to provide a pulverized coal-oxidant gas mixture and contacting the pulverized coal-oxidant gas mixture with a flame sufficiently hot to combust the mixture. An oxygen-containing gas is passed in contact with a dense ceramic membrane of metal oxide material having electron conductivity and oxygen ion conductivity that is gas-impervious until the oxygen concentration on one side of the membrane is not less than about 30% by volume. An oxidant gas with an oxygen concentration of not less than about 30% by volume and a CO2 concentration of not less than about 30% by volume and pulverized coal is contacted with a flame sufficiently hot to combust the mixture to produce heat and a flue gas. One dense ceramic membrane disclosed is selected from the group consisting of materials having formulae SrCo0.8Fe0.2Ox, SrCo0.5FeOx and La0.2Sr0.8Co0.4Fe0.6Ox.