A novel reactor concept is proposed for partial oxidation reactions that combines membrane and fluid bed reactor technology in a single vessel. Air fluidizes the shell side in which both membrane tubes - charged with catalyst - and cooling coils are immersed. Oxygen transport through the membrane wall is controlled by pressure drop. Model simulations, based on the kinetics for the oxidative dehydrogenation of propane to propene, show improved performance compared to conventional fixed bed technology. The controlled oxygen addition along the axis improves propene selectivity and broadens the operating range with respect to hydrocarbon and oxygen feed rates.