A novel concept for hydrogen generation by methane steam reforming in a thermally coupled catalytic fixed bed membrane reformer is experimentally demonstrated. The reactor, built from three concentric compartments, indirectly couples the endothermic methane steam reforming with the exothermic methane oxidation, while hydrogen is separated by a permselective Pd membrane. The study focuses on the determination of the key operation parameters and understanding their influence on the reactor performance. It has been shown that the reactor performance is mainly defined by the dimensionless ratio of the methane steam reforming feed flow rate to the hydrogen maximal membrane flow rate and by the ratio of the oxidation and steam reforming methane feed flow rates. (C) 2009 Professor T. Nejat Veziroglu. Published by Elsevier Ltd. All rights reserved.