Hydrogen has been produced by decomposing methane thermocatalytically at 1123 K in the presence of activated carbon supported Pd catalysts (Samples coded as Pd5 and Pd10 respectively) procured from SRL Chemicals, India. The studies indicated that the Pd10 catalyst has higher catalytic activity and life for methane decomposition reaction at 1123 K and volume hourly space velocity (VHSV) of 1.62 L/hr.g. An average methane conversion of 50 mol % has been obtained for Pd10 catalyst at the above reaction conditions. SEM and TEM-EDXA images of Pd10 catalyst after methane decomposition showed formation of carbon nanofibers. XRD of the above catalyst revealed, moderately crystalline peaks of Pd which may be responsible for the increase in the catalytic life and the formation of carbon nanofibers. (C) 2010 Professor T. Nejat Veziroglu. Published by Elsevier Ltd. All rights reserved.