The subject matter disclosed herein relates to a method of reducing an amount of mercury discharged to an environment in a flue gas (12) generated by combustion of a fuel source. The method includes contacting the flue gas with a moist pulverous material upstream of a particle separator (24), mixing powdered activated carbon (PAC) in an amount between about 0.5 lb/MMacf and 10 lbs/MMacf with the flue gas (12) upstream of the particle separator (24), wherein the PAC interacts with at least a portion of mercury containing compounds in the flue gas (12), and separating the mercury containing compounds from the flue gas (12) containing the moist pulverous material and PAC, thereby reducing an amount of mercury in the flue gas (12).