This work presents a parametric investigation of aluminum-water reaction to generate hydrogen, using a novel activated aluminum powder. An original thermo-chemical process involving a small fraction of a lithium-based activator enables a spontaneous reaction of the activated aluminum particles with water, which otherwise would not react due to the existence of an oxide or hydroxide surface layer. Experiments have shown that a fast, self sustained reaction of activated aluminum with water takes place even at room temperature and, for appropriate operating conditions, results in a practically 100% yield of hydrogen generation. The reaction rate may be controlled by the aluminum particle size, water temperature, metal activation conditions and metal/water mass ratio. The method demonstrates safe and compact hydrogen storage (11 wt% compared to the aluminum). Among its potential applications may be fuel cells, as well as automotive and marine propulsion. (C) 2010 Professor T. Nejat Veziroglu. Published by Elsevier Ltd. All rights reserved.