One of the most promising technologies for lightweight, compact, portable power generation is proton exchange membrane (PEM) fuel cells. PEM fuel cells, however, require a source of pure hydrogen. Steam reforming of hydrocarbons in an integrated membrane reactor has potential to provide pure hydrogen in a compact system. In a membrane reactor process, the thermal energy needed for the endothermic hydrocarbon reforming may be provided by combustion of the membrane reject gas. The energy efficiency of the overall hydrogen generation is maximized by controlling the hydrogen product yield such that the heat value of the membrane reject gas is sufficient to provide all of the heat necessary for the integrated process. Optimization of the system temperature, pressure and operating parameters such as net hydrogen recovery is necessary to realize an efficient integrated membrane reformer suitable for compact portable hydrogen generation. This paper presents results of theoretical model simulations of the integrated membrane reformer concept elucidating the effect of operating parameters on the extent of fuel conversion to hydrogen and hydrogen product yield. Model simulations indicate that the net possible hydrogen product yield is strongly influenced by the efficiency of heat recovery from the combustion of membrane reject gas and from the hot exhaust gases. When butane is used as a fuel, a net hydrogen recovery of 68% of that stoichiornetrically possible may be achieved with membrane reformer operation at 600 degrees C (873 K) temperature and 100 psig (0.791 MPa) pressure provided 90% of available combustion and exhaust gas heat is recovered. Operation at a greater pressure or temperature provides a marginal improvement in the performance whereas operation at a significantly lower temperature or pressure will not be able to achieve the optimal hydrogen yield. Slightly higher, up to 76%, net hydrogen recovery is possible when methanol is used as a fuel due to the lower heat requirement for methanol reforming reaction, with membrane reformer operation at 600 degrees C (873 K) temperature and 150psig (1.136 MPa) pressure provided 90% of available combustion and exhaust gas heat is recovered. (C) 2008 Elsevier B.V. All rights reserved.