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Power plants are considered as the major source of carbon dioxide pollution in Kuwait. The gas is released from the combustion of fuel with air to convert water into steam. It has been proven that the use of enriched oxygen can reduce fuel consumption and minimize emissions. In this study, UniSim (Honeywell, Charlotte, NC, USA) was used to estimate the fuel savings and carbon dioxide emissions of the largest power plant in Kuwait (Alzour). Results showed that at 30 mol% oxygen, the fuel consumption was lowered by 8%, with a reduction in carbon dioxide emissions by 3524 tons per day. An economic analysis was performed on the use of a membrane unit to produce 30 mol% oxygen. At current market prices, the unit is not economical. However, the system can achieve a payback duration of 3 years if natural gas price increases to USD 6.74 or the compressor cost decreases to USD 52 per kW. Currently, the research and development sector is targeting a membrane fabrication cost of less than USD 10 per m² to make the membrane process more attractive.