Copper salt of Wells-Dawson type heteropolyacid when reduced in ethanol vapors at temperatures 210-290 degrees C becomes active bifunctional catalyst for ethanol conversion. In oxygen free atmosphere (helium), both water and ethylene are formed predominantly. Other side products include small amount of diethyl ether and traces of acetaldehyde. When air is used as a carrier gas instead of oxygen free helium, acetaldehyde, typical product of ethanol dehydrogenation, forms on redox centers. Simultaneously, the formation of ethylene and diethyl ether, the products of ethanol dehydration occurring on Bronsted acid centers, is observed. (C) 2011 Elsevier B.V. All rights reserved.