Catalytic generation of hydrogen by the reaction of methanol with oxygen in the presence of steam over an industrial copper-zinc oxide catalyst was studied. Under differential oxygen conversion conditions, the catalyst remained in an oxidized state, and the main reaction was oxidation of methanol to carbon dioxide and water. The activity was proportional to the copper oxide surface area. The methanol consumption rate had a small positive order in methanol and oxygen (0.18th order) and was suppressed by water. The catalyst deactivated with time on stream due to agglomeration of copper oxide. As the reactor temperature increased, the rate of methanol oxidation increased, the oxygen conversion became very high, and the catalyst away from the reactor entrance became reduced. Then, a significant rate of hydrogen production was observed.