A new process of producing pure H-2 in consumption of H2O and carbon is presented. It contains three reactions: (1) Steam reacts with FeO at 800 degrees C generating pure H-2 and Fe3O4/Fe2O3; (2) Fe3O4/Fe2O3 are reduced to FeO by CO at same temperature while CO changes to CO2; (3) The produced CO2 reacts with carbon generating CO at 900 degrees C. The net product of the process is H-2 and CO. Theoretical energy gain of the new process is much higher than 1.0 and is energetically more than autarky. Some CO satisfies the process energy requirement and the surplus CO outputs as by-product. Experiments proved the feasibility of the process with indication of the importance to control the extent of reduction. The prominent advantages embedded allow the process applied in large-scale to trade coal for hydrogen. As such, instead of burning coal, hydrogen is burnt wherever energy is consumed.