This Small Business Innovation Research Phase I project proposes to develop a direct synthesis process for hydrogen peroxide from hydrogen and oxygen using a highly selective catalyst. The current commercial process is complex and based on autoxidation of anthraquinone. Many attempts have been made to replace this process with a simple, direct synthesis. However, none of the attempts have been commercially feasible due to the low activity and selectivity or the operating limitations set forth by explosion limits. The main objective in this Phase I is to develop a new generation phase-controlled Pd catalyst that will function below the lower explosion limit and will remain highly active and selective. A capping polymer will be used to control the morphology of Pd on the catalyst, in order to expose the desired crystal phase. The research will lead to a cost efficient process due to its simplicity: no organic solvent, reduced purification cost, and fewer processing steps. A potential saving of 20 - 30 % over the current commercial process is anticipated. The direct synthesis process has two potential niches: clinical applications due to its ultra-pure and organic-free product, and as bleach in the pulp and paper industry due to its simplicity which makes on-site production viable.