A systematic simulation study was performed to investigate the performance of a porous ceramic membrane reactor for hydrogen production by means of methane steam reforming. The results show that the methane conversions much higher than the corresponding equilibrium values can be achieved in the membrane reactor due to the selective removal of products from the reaction zone. The comparison of isothermal and non-isothermal model predictions was made. It was found that the isothermal assumption overestimates the reactor performance and the deviation of calculation results between the two models is subject to the operating conditions. The effects of various process parameters such as the reaction temperature, the reaction side pressure, the feed flow rate and the steam to methane molar feed ratio as well as the sweep gas flow rate and the operation modes, on the behavior of membrane reactor were analyzed and discussed. (c) 2004 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.