The UOP/Hydro MTO process utilizes a SAPO-34-containing catalyst that provides up to 80% yield of ethylene and propylene at near-complete methanol conversion. This paper discusses new advancements related to the technology which can increase the carbon selectivity from methanol to ethylene-plus-propylene to about 85-90% and can extend the range of propylene-to-ethylene production ratios to more than 2.0. The MTO technology has the potential to play an important role in the European olefin industry as part of a segregated gas-to-olefins (GTO) chain, utilizing dedicated imported methanol or DME as a low-cost feedstock. Furthermore, the ethylene/propylene product flexibility can contribute to meet the increasing propylene demand. The technology is also attractive due to low specific CO2 emissions. (c) 2005 Elsevier B.V. All rights reserved.