Olivine, one of the most abundant minerals existing in nature, is explored as a CO2 carbonation agent for direct carbonation of CO2 in flue gas. Olivine based CO2 capture is thermodynamically favorable and can form a stable carbonate for long-term storage. Experimental results have shown that water vapor plays an important role in improving CO2 carbonation rate and capacities. Other operation conditions including reaction temperature, initial CO2 concentration, residence time corresponding to the flow rate of CO2 gas stream, and water vapor concentration also considerably affect the performance of the technology.