At mid-day, the sunlight provides excessive energy for photo-hydrogen production by photosynthetic bacteria. Conversion efficiency from light energy to hydrogen decreased under high illumination. To overcome this problem, we examined a method to spatial dispersion of the high illumination. The new photobioreactor using the light shade bands set on the surface of the reactor was developed for efficient hydrogen production. Spatial dispersion gave remarkable effect on conversion efficiency under the excessive light condition. Indoors, the 1.0 cm width of light shade bands gave the best conversion efficiency (2.1 %). Actual use of the sunlight, the 1.5 cm width of light shade bands provided the best conversion efficiency (1.4%). Light inhibition was successfully suppressed by the light shade bands in both experiments. The dispersed light energy could be used for other energy conversion device as solar cells. (C) 2002 International Association for Hydrogen Energy. Published by Elsevier Science Ltd. All rights reserved.