We proposed to demonstrate the effectiveness of a catalytic membrane reactor (a ceramic membrane combined with a catalyst) to selectively produce methanol by partial oxidation of methane. Methanol is used as a chemical feed stock, gasoline additive, and turbine fuel. Methane partial oxidation using a catalytic membrane reactor has been determined as one of the promising approaches for methanol synthesis from methane. Methanol synthesis and separation in one step would also make methane more valuable for producing chemicals and fuels. Another valuable fuel product is H{sub 2}. Its separation from other gasification products would make it very valuable as a chemical feedstock and clean fuel for fuel cells. Gasification of coal or other organic fuels as a source of H{sub 2} produces compounds (CO, CO{sub 2}, and H{sub 2}O) that require high temperature (1000-1500 degrees F) and high pressure (600-1000 psia) separations. A zeolite membrane layer on a mechanically stable ceramic or stainless steel support would have ideal applications for this type of separation.