This paper describes the construction of basic types of cyclone furnaces, including horizontal, front, and vertical cyclones, and proposes a possible route for implementation of oxycombustion technology in order to reduce the consumption of fossil fuels and provide a countermeasure against climate change. Cyclone furnaces have great potential for use in the modern power industry, providing suitable conditions for the combustion of gaseous, liquid, and/or solid fuels including those of high ash content and low ash melting temperature. Due to the strong vortex in the combustion chamber, the residence time of fuel particles can be significantly longer, achieving a substantial (up to 90%) reduction in fly ash. The paper also presents the concept and prototype of an innovative vertical cyclone furnace. The furnace was designed by the authors of this text, and intended for the efficient oxycombustion of coal dust. In the presented design it was assumed that the oxidation of fuel volatiles and char residue would be run separately in order to extend the range of fuels for possible oxycombustion and achieve the conditions for substantial reduction of NOx in the flue gas.