In order to realize future hydrogen society, hydrogen production systems must meet the large demand of hydrogen usage. Alkaline water electrolysis (AWE) would be one of the candidate technologies to produce hydrogen on a large scale from renewable energy. We have conducted basic research into AWE, trying to reveal technical issues under zero gap system in new cell technology. The zero gap system contributes lower cell voltage without causing any major operating problems compared with conventional finite gap cell. However, it was observed that Ni base electrodes showed corrosion phenomena in a number of test trials including steady operating conditions and several shut-downs. Activated Raney Ni alloy coating for anode material had an advantage for oxygen overvoltage. It showed a saving of around 100 mV at 40 A/dm(2) (0.4 A/cm(2)) against Ni bare anodes. In the Chlor-Alkali (C/A) industry, thermal decomposition coating of mixed noble metal on Ni substrate is commonly used for advanced activated cathodes. It showed very low hydrogen over-potential of around 100 mV in AWE. To achieve better cell performance, separator selection is very important. We evaluated several separators including ion exchange membrane (IEM) to understand the basic function in AWE. IEM for C/A electrolysis showed high cell voltage (over 2.2 V) but low O-2 impurity in H-2 gas. Hydrogen purity was over 99.95%. Porous separators made of polypropylene showed 1.76 V at 40 A/dm(2) (0.4 A/cm(2)), 80 degrees C. But there was a weakness on the durability for continuous operation. Proper selection of separator is important in an actual plant for effective and safe cell operation. The concept of safety operation is referred to by diffusion coefficient of hydrogen. (C) 2013 Elsevier Ltd. All rights reserved.