BACKGROUND: Iron ochres are gelatinous sludges that can cause problems in terms of water management. In this work, the application of iron ochre obtained from a river has been applied to catalytically crack methane - another potential waste product - into two useful products, hydrogen and amagnetic carbon-containing composite. RESULTS: The powder X-ray diffraction (XRD) pattern of the iron ochre was found to be consistent with the expected 2-line ferrihydrite, and energy dispersive X-ray (EDX) analysis showed Fe to be a major component although some Si and Ca were present. The sample was observed to contain a fraction with a tubular morphology consistent with the presence of extra-cellular biogenic iron oxide formed by leptothrix. Upon exposure to methane at elevated temperatures, the material was found to transform into an active catalyst for hydrogen production yielding a magnetic carbon-containing composite material comprising filamentous carbon and encapsulating graphite. CONCLUSION: The application of two waste products - iron ochre and methane - to generate two useful products - hydrogen and a magnetic carbon-containing composite - has been demonstrated. Furthermore, the ochre has been shown to comprise tubular morphology extra-cellular biogenic iron oxide which may be of interest in terms of other applications. (C) 2014 The Authors. Journal of Chemical Technology & Biotechnology published by John Wiley & Sons Ltd on behalf of Society of Chemical Industry.