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A fluidized-bed reactor with separate butane and oxygen feeds has been studied in the oxidative dehydrogenation of butane. Under suitable conditions, feed segregation allows the creation of separated oxidation and reduction zones in the same reaction vessel, between which a V/MgO catalyst is recirculated. The behavior of the reactor has been characterized, with the separation of oxidation and reduction zones as the focus of the study. The performance of the two-zone reactor has been compared to that of a conventional fluidized-bed reactor.