In a method for removing NOx from the flue gas using a coal water slurry, other carbon containing fuel and water, or unburned carbon existing in the furnace itself due to continuing combustion, the ratio of carbon to water is adjusted so that a portion of the carbon forms activated carbon after injection of the fuel slurry into the flue gas. The activated carbon is then available to collect mercury chloride from the flue gas which has been formed through the enhancement of the mercury and chlorine oxidation reaction, enhanced through the heterogeneous reaction mechanism of this same activated carbon in the primary combustion fuel.