The hydrogen energy has become an important energy resource due to the energy and environmental problems. Industrially hydrogen is produced by steam reforming of hydrocarbons such as methane. The methane conversion can be increased to 90% in a membrane reactor using Pd or Pd alloy composites. However, the Pd-Fe alloy created by the diffusion of stainless steel substrate components into a palladium membrane by operating temperature greater than 400⁰C can reduce the permeability of hydrogen. One solution is to create intermetallic diffusion barrier such as ceramic substrate, which blocks the diffusion of substrate components into the Pd membrane. In this study, oxidation ceramic layers as diffusion layer on Pall/Mott porous stainless steel (PSS) substrate were produced in tube furnace purged with air gas at temperatures from 500 ~ 800⁰C.With the increasing in annealed temperature, the average pore diameters of Pall/Mott PSS substrates decrease. The distributions of pore diameter of PSS substrates become narrow with the annealed temperature greater than 600⁰C.The X-ray diffraction patterns of the samples demonstrate the presence of Cr₂O₃in these oxidation layers. Then the Pd membranes were deposited on these PSS substrate with the intermetallic oxidation diffusion barriers. The effective Pd membrane thickness can decreases from 30 μm to 25 μm with the same gas flux. The maximum average hydrogen flow rate and selectivity of Pall PSS substrates are 80m³/m²-hr and 4300 (H₂/N₂),while those of Mott PSS substrate are 47m³/m²-hr and 1800 (H₂/N₂)with the pressure difference kept at 8atm.