Parallel to the optimization of conventional thermal power plants for efficient use of fossil fuels, the institute has been intensively working on a highly efficient power cycle for carbon capture and storage since 1995. The so-called Graz Cycle was invented by H. Jericha and is an oxy-fuel cycle with internal combustion of fossil fuels with pure oxygen. This allows an easy and cost-effective capture of the combustion generated CO₂ by condensation. Since then an impressive list of publications on this topic has been accomplished, which can be found together with a more detailed description on the Graz Cycle website. The future use of hydrogen generated by electrolyses using renewable energy like wind or solar energy is considered as a matter of long term development. In order to use the valuable fuel hydrogen in a highly efficient way it is also suggested to burn it with pure oxygen also provided by electrolysis. This would lead to a power plant which produces no emissions to the environment. The main scientific objective of this work is the design of a thermal cycle for optimum use of hydrogen and the development of novel components of this cycle with internal combustion of hydrogen and oxygen. All thermodynamic simulations are performed with the software IPSEpro by Simtech Simulation Technology.