Ethanol steam reforming was been carried out in a membrane reactor consisting of a dense Pd-Ag thin wall tube, selectively permeable to the hydrogen, and a catalytic bed. In this way the hydrogen produced during the reaction was continuously removed from the reaction site. The permeator tube was produced via new technique of cold-rolling and diffusion welding. The experimental tests were performed in the temperature range of 400-450 °C to study the performance of the membrane reactor in terms of reaction conversion and hydrogen yields. The main investigated operating parameters were the water/ethanol feed molar ratio, the pressure inside the membrane, the sweep gas mode, the spatial velocity and the kind of catalyst bed. In all tests, ultra pure hydrogen was separated through the membrane. The experimental results demonstrated the capability of the Pd-Ag membrane to shift the conversion of the ethanol steam reforming reaction beyond the thermodynamic equilibrium.