The present invention relates to an improvement in a system for the generation of hydrogen by contacting an aqueous solution of a metal hydride salt with a hydrogen generation catalyst. In particular, the present invention relates to the incorporation within the system of a recycle line of water condensed from the fluid product to the feed line to be contacted with the catalyst. the internal recycle line permits the use of a more concentrated solution of metal hydride as it is diluted by the recycle line prior to contact with the catalyst.