The Small Business Innovation Research (SBIR) Phase II project will develop mini-channel membrane reformers to produce pure hydrogen from gaseous and liquid fuels. Fuel reforming of hydrocarbon fuels to yield high purity hydrogen is, at present, the only means for overcoming the lack of an established infrastructure for hydrogen. Fuel processors must be able to start up quickly, follow demand rapidly, be tolerant to sulfur, and operate efficiently over a wide range of conversion rates. The use of mini-channel reformers, with selective membrane removal of hydrogen at the site of production within the individual reformer stages, will lead to improved efficiency, thermodynamics and kinetics of reforming reactions. If successful, the proposed membrane reformer system will decrease system complexity, reduce costs, and allow ease of control, monitoring and transient response. The proposed technology has significant business opportunities in the business sector for high-purity merchant hydrogen, and in the civilian and military sectors for hydrogen fuel cells, used in portable power and distributed generation. Valuable scientific and technological understanding will also be gained about the behavior of hydrogen-permeable membranes and their use in high-temperature, sulfur-resistant, compact fuel reformers to produce high-purity hydrogen