Photoproduction of hydrogen has been studied as one of the ways to produce a clean, renewable energy source. Ultrastructure of the selected strain Anabaena variabilis SPU 003, a heterocystous cyanobacterium, has been done to understand the cell structure. The organism was found to be essentially a dark hydrogen producer. While pH had no significant effect on hydrogen production, optimum temperature was found to be 30°C. Various sugars increased the production of hydrogen while the presence of various nitrogen sources inhibits the production. The production of hydrogen is highly sensitive to salinity and micronutrients.