The invention is a continuous process for producing methane from an underground coal bed or an above ground carbon-containing resource using hydrogen as a recycling working fluid. For an underground coal seam, the process includes injecting (220) hydrogen into the coal seam to form a reaction effluent of methane, hydrogen and carbon monoxide; extracting the reaction effluent (230) for processing above ground; cleaning the reaction effluent (120); cooling the cleaned reaction effluent (130) and processing it through a water gas shift reactor (140); separating (150) hydrogen, methane, and carbon dioxide into separate streams; producing the carbon dioxide stream (160) as a product gas; processing a first portion (170) of the methane stream in a steam reformer, water gas shift reactor and gas separator (180) to produce segregated flows of hydrogen and carbon dioxide, combining the segregated hydrogen flow with the separated hydrogen stream (190); heating and repressurizing (200) the combined hydrogen stream to the temperature and pressure of the hydrogen in the first step; producing a second portion (210) of said methane stream as a product gas; and injecting (220) the combined hydrogen stream into the underground coal bed to continue the process.