Combined heat and power plants (CHP) require advanced pollution controls in order to ensure acceptable environmental performance. Flue gas condensate cleaning is a critical operation in this regard, enabling high separation efficiencies for particles, heavy metals, polyaromatic hydrocarbons, and other contaminants – all while enhancing the thermal output of the CHP unit. The current trend is to employ membrane technologies such as reverse osmosis (RO) for purification and water recovery. Although RO-based treatment is a proven and mature technology, there are several disadvantages. RO operates with very high pressure differences, causing high mechanical loading and subsequent deterioration of membrane performance and lifetime. Moreover, biofouling is a well-known problem with RO, often requiring extensive use of harsh pretreatment chemicals. Concerning the limitations of RO, there is a need to consider alternative cleaning methods. For the purpose, membrane distillation is introduced as a promising technology for flue gas condensate cleaning in this study. The experimental tests have been performed using an Air Gap Membrane Distillation (AGMD) bench scale unit in order to determine the potential of membrane distillation (MD) for flue gas condensate cleaning. The real flue gas condensate samples were collected from Stockholm Exergi plant. The results show that high quality condensate was recovered having conductivity ~0.5 mS/m, pH ~5, TOC <0.5 ppm, TDS <10 ppm, COD <5 ppm, turbidity <1 NTU, total hardness <0.1 °dH and alkalinity <2.4 mg HCO₃/L. Moreover, the outcomes present that MD also provides better performance as compared to RO in terms of contaminants concentration i.e., total ammonia <0.1 ppm, mercury <0.02 ppb, zinc <4 ppb and copper <1 ppb. Results from current study show that the treated condensate cannot only be reused as boiler water but disposing it into water bodies is also acceptable under strict environmental regulations.