In this study a Fluidized Bed Membrane Reforming (FBMR) process has been proposed and enhancements to improve the economics of the Steam Methane Reforming (SMR) process for production of hydrogen have been incorporated. Separation of the product hydrogen using membrane technology to drive the reaction beyond its thermodynamic equilibrium and the use of high Aux palladium coated niobium/tantalum membranes have been studied. Capital and operating costs were estimated, and supply cost economics determined for comparison to a conventional Steam Methane Reforming plant. The study identified that Fluidized Bed Membrane Reforming has an increase in conversion over conventional technology at comparable operating temperature and pressure. Direct firing of fluidized bed reactors located in the radiant section of a reformer type furnace is the most efficient scheme to transfer the heat of reaction compared to the condensing sodium vapor type of hear transfer. The configuration with high flux membranes has a lower estimated capital and operating cost than conventional SMR.