This paper describes a capacitive flow sensor and the development of a suitable algorithm for the determination of the slug length and the slug velocity in pneumatic dense phase conveying. The flow meter makes use of novel electrode topology. The algorithm is based on a two-step approach using Fourier transformation. It allows for robust operation and features sub-sample resolution for the flow parameters obtained. A process model for dense phase conveying is used to validate the proposed algorithm. Practical experiments are conducted to demonstrate the applicability of both the capacitive flow sensor and the algorithm in pneumatic dense phase conveying.