The development of hydrogen energy as a sustainable energy resource is essential for mitigating climate change. The primary challenge to the commercialization of hydrogen energy, relative to that of petrochemical fuels, is cost. Therefore, an innovative business model that converts the costs of procuring biomass into revenue via the production of hydrogen was developed. Profitable hydrogen production can typically be realized by lowering costs through continuous technological development and increasing scale. Feedstock procurement costs, however, limit the cost/benefit reduction flexibility. This study employs biowaste material as feedstock for biological fermentative hydrogen production. This model extends the hydrogen production value chain to include the income from biomass hydrogen production as well as the revenue from processing biowaste and reduced fuel source costs. This study investigates the costs involved in the commercialization of the hydrogen fermentation process, develops an innovative business model, and presents a case study to describe this model. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.