In this paper, a novel process for hydrogen production by steam reforming of natural gas with inherent capture of carbon dioxide by chemical-looping combustion is proposed. The process resembles a conventional circulating fluidized bed combustor with reforming taking place in reactor tubes located inside a bubbling fluidized bed. Energy for the endothermic reforming reactions is provided by indirect combustion that takes place in two separate reactors: one for air and one for fuel. Oxygen is transferred between the reactors by a metal oxide. There is no mixing of fuel and air so carbon dioxide for sequestration is easily obtained. Process layout and expected performance are evaluated and a preliminary reactor design is proposed. It is found that the process should be feasible. It is also found that it has potential to achieve better selectivity towards hydrogen than conventional steam reforming plants due to low reactor temperatures and favorable heat-transfer conditions. (c) 2006 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.