Abstract A review of hydrogen production as a source of energy was made. Electrolysis was found to be the major technique of hydrogen production from sea water. A potential difficulty with this process is the chlorine and oxygen that are evolved at the anode. A new concept for hydrogen production from sea water by an electrochemical method was investigated. In this concept fresh water and hydrogen are produced simultaneously. The electric cell consists of a set of electrodes with each electrode suspended between two plastic membranes (cations and anions). Hydrogen is evolved from the cation compartment and chlorine gas from the anion compartment. Cost estimation and evaluation of the process were made.