Actually, Methane is a much better hydrogen carrier than water for the following reasons.<br /><br />Methane contains 1 C at MW of about 12 and 4 H at MW of about 1 each.<br /><br />Total Hydrogen content of Methane is about 25% by weight.<br /><br />Water contains 1 O at MW of about 16 and 2 H at MW of about 1 each.<br /><br />Total Hydrogen content of water is about 11.11% by weight.<br /><br />So, Methane carries over twice as much hydrogen weight for weight as water.<br /><br />There are very few molecules other than H2 that contain more than 25% Hydrogen by weight.<br /><br />Now, as for water, it isn't very useful as fuel because it's heat of combustion is a non starter.<br /><br />Methane on the other hand generates a large amount of heat when combusted with Oxygen.<br /><br />Now let's look at the reaction.<br /><br />CH4 + 3O2 - /> 2 H2O + 1 CO2<br /><br />Gee, 66% of the combustion products are water. That's really close to what you get when you burn Hydrogen and Oxygen. Now at a given temperature, the velocity of the exhaust or the ISP should be proportional to the inverse of the square root of the MW of the combustion products.<br /><br />H2O is MW 18<br />CO2 is MW 44<br /><br />Yes, the CO2 sucks, but there is more water than CO2<br /><br />Typically, rocket engines are run fuel rich. Which is good and bad....<br /><br />With hydrogen, the excess is good in that it really kicks up the ISP, but bad in that it's so low density that it really is difficult to pump that much of it and the temperature is lower which lowers the velocity a little bit.<br /><br />With Methane, CH4 has a MW of 16 which is less than water and much less than CO2, so it does improve the ISP to a point which is the point at which it drops the temperature too much.