The present invention is related to a system for removal of moisture and contaminants from recirculated flue gas. The system includes a spray tower for spraying the flue gas with a liquid reagent to remove contaminants from the flue gas. A heat exchanger, integrally connected to the spray tower, cools the liquid reagent before the reagent is sprayed onto the flue gas stream. Cooled liquid reagent improves the condensation of the water vapor in the flue gas during the spraying process and provides a lower moisture content flue gas exiting the system. Combustion process efficiency improves as flue gas redirected to the burner for combustion contains.