FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549



(Mark  One)

[X]     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR 15(d) OF THE SECURITIES
        EXCHANGE  ACT  OF  1934
For  the  quarterly  period  ended  March  31,  2001


[ ]     TRANSITION  REPORT  PURSUANT  TO  SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE  ACT  OF  1934
For  the  transition  period  from  ________  to  ________

Commission  file  number:  000-26957

                              DCH TECHNOLOGY, INC.
        (Exact name of small business issuer as specified in its charter)

             Delaware                                    84-1349374
   (State or other jurisdiction             (I.R.S. Employer Identification No.)
of  incorporation  or  organization)

                             27811 Avenue Hopkins #6
                               Valencia, CA  91355
                    (Address of Principal Executive Offices)

                    Issuer's telephone number: (661) 775-8120

     Check  whether  the  issuer  (1)  filed all reports required to be filed by
Section  13  or 15(d) of the Exchange Act during the preceding 12 months (or for
such  shorter period that the registrant was required to file such reports), and
(2)  has  been subject to such filing requirements for the past 90 days. Yes [X]
No  [ ]

                      APPLICABLE  ONLY  TO  CORPORATE  ISSUERS:

     As of March 31, 2001 the issuer had 28,297,765 shares of common stock, $.01
par  value  per  share,  outstanding.


<PAGE>
                              DCH TECHNOLOGY, INC.

                                    CONTENTS

                                                                        Page No.
                                                                        --------
PART  I  -  FINANCIAL  INFORMATION

   Item  1.     Financial  Statements

                Independent  Accountant's  Report                          F-1

                Consolidated  Balance  Sheets                              F-2

                Consolidated  Statements  of  Operations                   F-3

                Consolidated  Statements  of  Cash  Flows                  F-4

                Notes  to  Consolidated  Financial  Statements               5

   Item  2.     Management's  Discussion  and  Analysis  of  Financial
                Condition  and  Results  of  Operations                      7

   Item  3.     Quantitative  and  Qualitative  Disclosures  About
                Market  Risk                                                17

PART  II  -  OTHER  INFORMATION

   Item  1.     Legal  Proceedings                                          18

   Item  2.     Changes  in  Securities  and  Use  of  Proceeds             18

   Item  3.     Defaults  Upon  Senior  Securities                          18

   Item  4.     Submission of Matters to a Vote of Security Holders         18

   Item  5.     Other  Information                                          18

   Item  6.     Exhibits  and  Reports  on  Form  8-K

SIGNATURES

INDEX  TO  EXHIBITS


<PAGE>
PART  I.  FINANCIAL  INFORMATION


<PAGE>
                         Independent Accountant's Report


Board  of  Directors  and  Shareholders
DCH  Technology,  Inc.

We  have reviewed the accompanying consolidated balance sheet of DCH Technology,
Inc. and subsidiary as of March 31, 2001 and the related consolidated statements
of  operations  and  cash  flows  for  the  three month period then ended. These
financial  statements are the responsibility of DCH Technology, Inc. management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A  review  of  interim financial
information  consists principally of applying analytical procedures to financial
data  and  making  inquiries of persons responsible for financial and accounting
matters.  It  is  substantially  less  in  scope  than  an  audit  conducted  in
accordance with generally accepted auditing standards, the objective of which is
the  expression  of  an  opinion  regarding  the financial statements taken as a
whole.  Accordingly,  we  do  not  express  such  an  opinion.

Based  on our review, we are not aware of any material modifications that should
be  made  to the consolidated financial statements referred to above for them to
be  in  conformity  with  generally  accepted  accounting  principles.

We  have  previously  audited,  in  accordance  with generally accepted auditing
standards,  the  consolidated  balance  sheet  of  DCH  Technology,  Inc.  and
subsidiaries as of December 31, 2000, and the related consolidated statements of
operations,  stockholders'  equity  and  cash  flows for the year then ended not
presented  herein;  and  in  our  report dated February 6, 2001, we expressed an
unqualified opinion on those consolidated financial statements.  In our opinion,
the  information  set forth in the accompanying consolidated balance sheet as of
December 31, 2000, is fairly presented, in all material respects, in relation to
the  consolidated  balance  sheet  from  which  it  has  been  derived.


/s/  Moss  Adams  LLP

Los  Angeles,  California
April  23,  2001


                                      F-1
<PAGE>
<TABLE>
<CAPTION>
                         DCH Technology, Inc. and Subsidiaries
                              CONSOLIDATED BALANCE SHEETS


                                        ASSETS

                                                          MARCH 31,     DECEMBER 31,
                                                            2001            2000
                                                        -------------  --------------
CURRENT ASSETS                                           (UNAUDITED)
<S>                                                     <C>            <C>
   Cash and cash equivalents                            $    133,054   $      75,300
   Accounts receivable, net of allowances                    187,125         175,047
   Inventory                                                 453,013         528,816
   Prepaid expenses                                           34,223          84,261
   Other receivable                                           13,029          17,076
                                                        -------------  --------------

     TOTAL CURRENT ASSETS                                    820,445         880,500

 PROPERTY AND EQUIPMENT, net                               2,396,517       2,362,357

 OTHER ASSETS
   Intangible assets, net of accumulated amortization        134,816         134,536
   Restricted cash deposit                                   700,000         700,000
   Investments with no readily determinable fair value        25,000          25,000
   Investment in joint venture                                37,716          41,623
   Marketing and leased asset, net                           169,023               -
   Other                                                       9,071          10,190
                                                        -------------  --------------

     TOTAL OTHER ASSETS                                    1,075,626         911,349
                                                        -------------  --------------

                                                        $  4,292,588   $   4,154,206
                                                        =============  ==============


 LIABILITIES AND STOCKHOLDERS' EQUITY


 CURRENT LIABILITIES
   Accounts payable                                     $    402,606   $     659,053
   Accrued expense                                            45,559         427,563
   Accrued compensation                                      253,391         728,805
   Current portion of note payable                            56,815          55,867
   Current portion of capital lease obligations               17,268          14,623
   Unearned revenue                                          100,000               -
   Other                                                       3,455               -
                                                        -------------  --------------

     TOTAL CURRENT LIABILITIES                               879,094       1,885,911

 LONG TERM LIABILITIES, net of current portion
   Note payable                                              696,058         710,658
   Capital lease obligations                                   8,981          14,662
                                                        -------------  --------------

     TOTAL LIABILTIES                                      1,584,132       2,611,231

 STOCKHOLDERS' EQUITY
   Preferred stock, $0.10 par value
     5,000,000 shares authorized,
     no shares issued and outstanding                              -               -

   Common stock, $0.01 par value,
     50,000,000 shares authorized,
     28,297,765 and 25,560,616 shares
     issued and outstanding                                  282,978         255,606

   Additional paid-in-capital                             21,858,327      17,631,900
   Investment in limited liability companies                 (64,554)        (68,714)
   Other comprehensive loss                                   (7,228)         (3,320)
   Accumulated deficit                                   (19,361,067)    (16,272,497)
                                                        -------------  --------------

     TOTAL STOCKHOLDERS' EQUITY                            2,708,456       1,542,975
                                                        -------------  --------------

                                                        $  4,292,588   $   4,154,206
                                                        =============  ==============
</TABLE>

    The accompanying notes are an integral part of these financial statements


                                      F-2
<PAGE>
<TABLE>
<CAPTION>
                      DCH Technology, Inc. and Subsidiaries
                      CONSOLIDATED STATEMENTS OF OPERATIONS


                                                  FOR THE THREE MONTHS ENDED
                                                           MARCH  31,
                                                  --------------------------
                                                      2001          2000
                                                  ------------  ------------
                                                   (UNAUDITED)   (UNAUDITED)
<S>                                               <C>           <C>
Sales                                             $   188,751   $   310,675

Cost of goods sold                                    103,196       157,683
                                                  ------------  ------------

Gross profit                                           85,555       152,992


Operating expenses:
   Selling, general and administrative expenses     2,298,098     1,260,207
   Depreciation and amortization                       97,198        27,766
   Research and development                           794,709       266,175
                                                  ------------  ------------

   Total operating expenses                         3,190,006     1,554,148
                                                  ------------  ------------

     Loss from operations                          (3,104,451)   (1,401,156)

Other income, net                                      15,880        18,939
                                                  ------------  ------------

Net loss                                           (3,088,571)   (1,382,217)

Other comprehensive loss
   Foreign currency translation adjustments            (3,908)            -
                                                  ------------  ------------

   Comprehensive loss                             $(3,092,478)  $(1,382,217)
                                                  ============  ============

Net loss per share
   Basic                                          $     (0.11)  $     (0.07)
                                                  ============  ============

   Diluted                                        $     (0.11)  $     (0.07)
                                                  ============  ============

Weighted average shares outstanding                27,579,427    20,458,047
                                                  ============  ============
</TABLE>

    The accompanying notes are an integral part of these financial statements


                                      F-3
<PAGE>
<TABLE>
<CAPTION>
                                   DCH Technology, Inc. and Subsidiaries
                                   CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                                            FOR THE THREE MONTHS ENDED
                                                                                   MARCH  31,
                                                                          ---------------------------
                                                                               2001         2000
                                                                          ------------  -------------
<S>                                                                       <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES                                       (UNAUDITED)   (UNAUDITED)

   Net loss                                                               $(3,088,571)   $(1,382,217)
   Adjustments to reconcile net loss to net cash used
     by operating activities:
      Depreciation and amortization                                            97,198         27,766
      Gain on disposal of equipment                                            (2,019)             -
      Issuance of stock, warrants and options for services                  1,558,913        535,620
     Loss from investment in partnerships and joint venture                     4,160              -
   Change in assets and liabilities:
     Accounts receivable, net allowance                                       (12,078)      (282,557)
     Inventory                                                               (124,660)       (24,836)
     Prepaid expenses                                                          50,038       (255,660)
     Other receivables                                                         10,134        (90,625)
     Accounts payable                                                        (256,447)      (138,780)
     Other current liabilities                                                  3,455              -
     Unearned revenue                                                         100,000              -
     Accrued expenses                                                         189,727        (58,081)
     Accrued compensation                                                    (475,414)         2,469
                                                                          ------------  -------------

     NET CASH USED IN OPERATING ACTIVITIES                                 (1,945,564)    (1,666,901)

CASH FLOWS FROM INVESTING ACTIVITIES
   Deposits made for equipment                                                  1,119              -
   Purchase of licenses and intellectual property                              (9,619)             -
   Purchase of property and equipment                                         (88,561)      (103,193)
                                                                          ------------  -------------

     NET CASH USED IN INVESTING ACTIVITIES                                    (97,061)      (103,193)

CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from sale of common stock and warrants                          1,702,500      3,860,000
   Principal payments on capital leases                                        (3,036)        (3,297)
   Principal payments on long-term debt                                       (13,652)             -
   Proceeds from exercise of options and warrants                             414,567      1,093,160
   Proceeds from common stock subscriptions receivable                              -        131,000
                                                                          ------------  -------------

     NET CASH RECEIVED FROM FINANCING ACTIVITIES                            2,100,379      5,080,863
                                                                          ------------  -------------

NET INCREASE (DECREASE) IN CASH                                                57,754      3,310,769

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                 75,300      1,193,084
                                                                          ------------  -------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                  $   133,054   $  4,503,853
                                                                          ============  =============

Supplemental disclosure of cash flow information:

   Cash paid for

     Interest                                                             $    14,452   $     1,330
     Income taxes                                                                 350         1,950


Non-cash  transactions
     During the period ended March 31, 2001, accrued expenses of $571,731
     was  settled  with the  issuance  of  options
</TABLE>

    The accompanying notes are an integral part of these financial statements


                                      F-4
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)  BASIS  OF  PRESENTATION

     The  accompanying  unaudited  consolidated  financial  statements have been
prepared  in  accordance  with the instructions to Form 10-QSB. The consolidated
balance  sheet,  statement  of  operations and cash flows at and for the periods
ended March 31, 2001 have been reviewed by the Company's independent auditors in
accordance  with  the  professional  standards  and  procedures  as set forth in
Statement  of  Auditing  Standards  No.  71  (SAS  71).  SAS  71  procedures for
conducting  a  review  of interim financial information generally are limited to
inquiries  and  analytical  procedures concerning significant accounting matters
relating  to  the  financial information to be reported. They do not include all
information  and  footnotes  necessary  for  a  fair  presentation  of financial
position  and  results of operations and cash flows in conformity with generally
accepted  accounting  principles. These consolidated financial statements should
be  read  in  conjunction with the consolidated financial statements and related
notes contained in the Company's Annual Report on Form 10-KSB for the year ended
December  31,  2000.  In  the  opinion of management, all adjustments considered
necessary  for  a  fair  presentation  have been included in the interim period.
Operating  results for the three months ended March 31, 2001 are not necessarily
indicative  of the results that may be expected for the year ending December 31,
2001.

(2)  LOSS  PER  SHARE

     Loss  per  share  of  common  stock  is computed using the weighted average
number  of  common  shares  outstanding  during  the period shown.  Common stock
equivalents  were  not  included  in  the  determination of the weighted average
number  of  shares  outstanding,  as  they  would  be  antidilutive.

(3)  INVENTORY

                              December 31, 2000  March 31, 2001
                              -----------------  --------------
      Raw Materials           $    393,158       $   288,167
      Work in Process              124,797           162,132
      Finished Goods                10,861             2,714
                              ------------       -----------
              Total           $    528,816       $   453,013
                              ============       ===========


                                        5
<PAGE>
(4)  INCOME  TAXES

     The Company records income taxes using an asset and liability method. Under
this  method,  deferred  Federal and State income tax assets and liabilities are
provided for temporary differences between the financial reporting basis and the
tax-reporting  basis of assets and liabilities. At March 31, 2001 cumulative net
operating losses, which have not been utilized for income tax reporting purposes
amount to approximately $18,000,000 for both Federal and State. These losses may
be  carried-forward  and used to offset future taxable income. Unused loss carry
forward  amounts  will  expire  for Federal and State purposes starting 2013 and
2002,  respectively.  The  deferred  tax  assets  resulting from this loss carry
forward  is  approximately  $7,300,000.  The  entire amount of this deferred tax
asset has been reserved and reduced to $-0- because of the uncertainty regarding
the  future  utilization  of  the  loss  carry  forward  amounts.

(5)  RECLASSIFICATIONS

     Certain  prior  year  amounts  have  been  reclassified to conform with the
current  year  presentation.  These  changes  have  no  effect  on net earnings.


                                        6
<PAGE>
ITEM  2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITIONS AND
RESULTS  OF  OPERATIONS.

     THIS  REPORT  CONTAINS  FORWARD-LOOKING  STATEMENTS  WITHIN  THE MEANING OF
SECTION  21E  OF  THE  SECURITIES  EXCHANGE  ACT  OF  1934,  INCLUDING,  WITHOUT
LIMITATION, STATEMENTS REGARDING THE COMPANY'S EXPECTATIONS, BELIEFS, INTENTIONS
OR  FUTURE  STRATEGIES THAT ARE SIGNIFIED BY THE WORDS "EXPECTS", "ANTICIPATES",
"INTENDS",  "BELIEVES",  OR  SIMILAR LANGUAGE.  THESE FORWARD-LOOKING STATEMENTS
INVOLVE  RISKS, UNCERTAINTIES AND OTHER FACTORS.  ALL FORWARD-LOOKING STATEMENTS
INCLUDED  IN  THIS DOCUMENT ARE BASED ON INFORMATION AVAILABLE TO THE COMPANY ON
THE  DATE  HEREOF  AND  SPEAK ONLY AS OF THE DATE HEREOF.  THE FACTORS DISCUSSED
BELOW  UNDER "FORWARD-LOOKING STATEMENTS" AND ELSEWHERE IN THIS QUARTERLY REPORT
ON  FORM  10-QSB  ARE  AMONG  THOSE FACTORS THAT IN SOME CASES HAVE AFFECTED THE
COMPANY'S  RESULTS  AND COULD CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM
THOSE  PROJECTED  IN  THE  FORWARD-LOOKING  STATEMENTS.

     The  following  discussion should be read in conjunction with the condensed
consolidated  financial  statements  and  notes  thereto.

General
-------

     DCH  (Diversified  Commercial  Hydrogen)  Technologies,  Inc.  ("DCH"),  is
engaged  in  the  acquisition,  development  and  commercial  exploitation  of
hydrogen-based  technologies.  Specifically,  we  concentrate on Proton Exchange
Membrane  ("PEM")  fuel  cells,  hydrogen  sensors  and  hydrogen  safety.


     We seek out patented technologies in our focus areas, secure those patented
technologies  through  licensing  agreements with the patent holders and convert
the  technologies  into viable products which we then produce and sell. We focus
on  technologies  related to the use of hydrogen, primarily hydrogen gas sensors
and  fuel  cells.


     We  commenced initial production of our first hydrogen gas detector product
line,  the  Robust Hydrogen Sensor product line, in November 1998, and currently
offer eight hydrogen sensor products. We began to commercialize low power (up to
10  KW)  fuel cells in 1998. In March 2000 we created a wholly-owned subsidiary,
the  Enable  Fuel Cell Corporation, to focus on this market. We currently obtain
our  funding  from private placements of equity securities and product sales. As
production  activity increases, and we fully implement our marketing strategies,
we  expect  revenues  from  sales of products to increase as a proportion of our
funding.

     On  August  10,  2000, our common stock began trading on the American Stock
Exchange  under  the  symbol  "DCH."


                                        7
<PAGE>
Hydrogen  Sensors
-----------------

     In  the  quarter  ended  April  30,  2001  we  introduced our new hand-held
hydrogen  monitoring  system,  the  H2scan(TM),  and  began shipments to various
customers. This latest addition to our sensor product line is a significant step
forward  in  both  technology  and capabilities. DCH's line of hydrogen specific
sensors  are  making inroads into the semiconductor manufacturing and automotive
markets  where we are meeting our customers' needs with the greater capabilities
that  DCH  can  provide.

     During  the  first  quarter  we  sold  12  hydrogen  sensor  systems to the
automotive  industry  for  evaluation as part of the safety systems for hydrogen
powered  cars.  Our  R&D  efforts  are  continuing  to  work with the automotive
industry  to  develop  an effective and cost efficient sensor for that industry.

     We also finished the installation of the clean room at our facility located
at  24832  Avenue Rockefeller, Valencia, CA. The purpose of the clean room is to
support our advanced sensor development and full scale manufacturing operations.
The  clean  room represents a significant step in ensuring significant growth in
the  sensor  division  and  will  help  us  meet the growing demand for hydrogen
sensors.  This  is  exemplified  by the fact that we exceeded our sensor revenue
goal  of  $171,000  by  approximately  $12,000  for  the  quarter.


Fuel  Cells
-----------

     On  March  5,  2001, we signed an agreement with Skeljungur Ltd. (The Shell
Oil  Distributors in Iceland) under which Skeljungur Ltd will distribute our PEM
fuel  cells  in Iceland as part of a six-month market opportunity assessment for
ten 12-Watt portable fuel cells. Skeljungur Ltd. may then act as the distributor
of  Enable(TM)  fuel  cells  to  markets  identified.

     We  further  signed  an  agreement  with  Icelandic  New  Energy  (INE),  a
commercial  consortum  that  includes  several global and Iceland businesses, to
provide  hydrogen  fuel to users of our fuel cells from a hydrogen depot the INE
has  constructed  in  Reykjavik.  The  depot  will  provide hydrogen at consumer
pricing significantly less than that typically available from today's industrial
and  commercial vendors. INE's depot is a key part of their strategy to launch a
hydrogen-based  economy  in  Iceland.

     We  shipped  our second 3KW proton exchange membrane (PEM) fuel cell system
to  the  Texas  Natural  Research  and Conservation Committee (TNRCC) in Austin,
Texas  in  January 2001. The unit was operated for a period of approximately two
months  as  part of a demonstration of the use of the mobile 3KW fuel cell as an
environmentally friendly system for powering air quality measuring equipment. We
are  now  in  the process of preparing the unit for a three months demonstration
project  with  Unocal Corporation.

     Also,  during  the first quarter of 2001, we provided an additional 12-Watt
fuel  cell  to  the  US  Army  Communications  Electronics  Command  (CECOM) for
continued  testing  and  evaluation.


                                        8
<PAGE>
Results  of  Operations
-----------------------

Three  Months  Ended March 31, 2001, Compared With Three Months Ended  March 31,
--------------------------------------------------------------------------------
2000
----

     For  the  three  months  ended  March  31,  2001, DCH had sales of $188,751
compared  to  sales  of  $310,675 for the three months ended March 31, 2000. The
lower sales in the first quarter of 2001 in comparison to sales reported for the
same period of the prior year, are as a result of a large non-recurring contract
sale  realized  during  the  first  quarter  of  2000. The cost of products sold
decreased  to  $103,196  for  the three months ended March 31, 2001, compared to
$157,683 for the three months ended March 31, 2000. In percentage terms, cost of
goods  sold  represented 54% of total sales for the three months ended March 31,
2001,  versus  50%  for  the  same  period  in  2000.

     We incurred a loss from operations of $3,190,006 for the three months ended
March  31,  2001, compared to a loss from operations of $1,554,148 for the three
months  ended  March  31 2000. Selling, general and administrative expenses were
$2,298,098  for the three months ended March 31 2001, compared to $1,260,207 for
the  comparable  period  in  2000.

     Included  in  selling, general and administrative expense was $1,558,913 of
expense  related  to  the  issuance  of approximately 50,000 shares of stock and
approximately  900,000 stock options to employee and consultants in lieu of cash
compensation.  We  issued  these  options  in  order  to  conserve  cash for our
operations,  in  accordance  with  an  ongoing  plan we implemented in the first
quarter  of  2001. We estimate that our use of stock options saved approximately
$400,000  during  the  first  quarter  of  2000.  As  an incentive for employees
accepting  options  in  lieu of cash during first quarter of 2001, option strike
prices  were  reduced  which  resulted in approximately $1,100,000 of additional
compensation  expense. Employees receiving these options have agreed to receive,
in  lieu  of cash, a portion of their salaries in return for the options. In the
quarter  ended  March  31, 2000, similar non-cash compensation equaled $535,620.

     In  addition  to  options  issued  in  lieu of cash compensation, we issued
approximately  950,000  stock  options for settlement of accrued liabilities and
4,000,000  of  incentive  stock  options.  The 4,000,000 incentive stock options
issued  vest  based  on predetermined stock prices and other conditions. None of
these  options  were  vested  as  March  31,  2001.

     Depreciation  and  amortization  increased  to $97,198 for the three months
ended  March  31, 2001, compared to $27,766 for the three months ended March 31,
2000,  due  to the purchase of the building located at 24832 Avenue Rockefeller,
Valencia,  CA  and  additional  equipment  to  support  our  operations.

     We  expensed  a  total  of  $794,709 on research and development during the
three  months ended March 31, 2001, compared to expenditures of $266,175 for the
three  months  ended March 31, 2000. The majority of the increase of $528,534 in
research  and  development  expenses  in  2001 was due to a greater focus on the
commercialization  and  development  of  products,  especially  in our fuel cell
operation.

     As  a result of these factors, we incurred a net loss of $3,088,571 for the
three  months  ended March 31, 2001 compared to a net loss of $1,382,217 for the
three  months  ended  March 31, 2000. We also had a foreign currency translation
adjustment  of $3,908 in the first quarter of 2001, resulting in a comprehensive
loss of $3,092,478 for that period.  Despite an increase in the number of shares
outstanding  during the period (we had 27,579,427 weighted average common shares
outstanding for the three months ended March 31, 2001, as compared to 20,458,047
weighted  average  common shares outstanding for the comparable period in 2000),
the  net  loss per share increased to $0.11 per share for the three months ended
March  31,  2001,  as  compared to a loss of  $0.07 per share for the comparable
period  in  2000.


                                        9
<PAGE>
Liquidity  and  Capital  Resources
----------------------------------

     We  generated  a  total of $2,100,379 in net cash from financing activities
for  the  three  months  ending  March  31,  2001,  as compared to net cash from
financing  activities  of  $5,080,863  generated during the comparable period in
2000.  Substantially all of the financing activities for the quarter ended March
31,  2001  consisted  of  a  private  placement of common stock, supplemented by
proceeds  from  the  exercise  of  options.

     We  utilized  $1,945,564  of net cash for operating activities in the three
months  ended  March  31, 2001, compared to the utilization of $1,666,901 of net
cash  for  operating activities for the comparable period in 2000.  The increase
in net cash used for operating activities was primarily related to the growth of
our  product  sales  and  operations during the period, including an increase in
inventory  and  accounts  receivable.  We used $97,061 of net cash for investing
activities in the three months ended March 31, 2001, compared to $103,193 of net
cash  for  investing activities in the three months ended March 31, 2000.  These
funds were primarily used in both years to purchase production equipment and the
acquisition  of  licenses  for  our  sensor  and  fuel  cell  production.

     At  March  31,  2001,  we  had  $133,054  in unrestricted cash, compared to
$75,300  in  cash  at  December  31,  2000.  We  also had accounts receivable of
$187,125  at  March  31,  2001,  compared  to accounts receivable of $175,047 at
December  31,  2000.  Investment in inventory totaled $453,013 at March 31, 2001
versus  $526,816  at December 31, 2000. The decrease in inventory is a result of
inventory  held at December 31, 2000 transferred to a leased asset and marketing
demos  recorded  as  other  assets  at  March  31,  2001.

     DCH  is  dependent  upon  outside  sources  for  equity capital to fund our
operating requirements. We anticipate that a portion of our capital requirements
for  the  balance  of  the period ending December 31, 2001 will be provided from
external  funding  sources.

We  are  actively pursuing financing options with potential strategic investors.
However,  there  is  no  assurance  that  we  will  be  able to generate capital
sufficient  to  meet  these  long-term  needs.  If  we cannot meet these capital
requirements,  we may be able to extend the period for which available resources
would  prove  adequate by not proceeding with planned major operation expansions
and  deferring  planned  staff  increases.


                                       10
<PAGE>
Forward-Looking  Statements
---------------------------

     The  forward-looking  statements contained in this Quarterly Report on Form
10-QSB  are subject to various risks, uncertainties and other factors that could
cause  actual  results to differ materially from the results anticipated in such
forward-looking  statements.  Included  among the important risks, uncertainties
and  other  factors  are  those  discussed  below.

RISKS  RELATED  TO  DCH'S  OPERATIONS

WE  MAY  BE UNABLE TO MEET OUR FUTURE CAPITAL REQUIREMENTS, WHICH MAY PREVENT US
FROM  IMPLEMENTING  OUR  BUSINESS  PLAN.

     Based on our current operating plan, we anticipate that our available funds
will  be  sufficient  to  satisfy  our  anticipated  needs  for working capital,
including  our  increased  marketing expenses, capital expenditures and business
expansion,  for  only  the  next  three  months.  After  that time, we will need
additional capital.  We may also need to raise additional funds in order to fund
more  rapid  expansion,  to  increase brand development and market awareness, to
develop  new  or  enhanced technology, to respond to competitive pressures or to
establish  strategic  relationships.  If  we  raise  additional funds by issuing
equity  or  convertible  debt  securities,  the  percentage  ownership  of  our
shareholders  will be diluted. Any new securities could have rights, preferences
and  privileges  senior  to those of our common stock. We cannot be certain that
additional  financing will be available when and to the extent required or that,
if available, it will be on acceptable terms. Recently, certain companies with a
history  of  generating  losses  apparently have been unable to raise additional
financing  to fund such continued losses. If adequate funds are not available on
acceptable  terms,  we  may  not  be  able to fund our expansion, increase brand
development  and  market  awareness,  develop  or enhance our service offerings,
respond  to  competitive  pressures  or  establish  strategic  relationships.

WE  HAVE  A  HISTORY OF LOSSES, AND WE EXPECT LOSSES FOR THE FORESEEABLE FUTURE.

     Since  our inception in November 1994, we have incurred substantial losses.
Our  comprehensive  net loss equaled $3,092,478 for the three months ended March
31,  2001. For the year ended December 31, 2000 we had a net loss of $7,657,413.
We  had  an  accumulated  deficit  of  $19,361,067  at  March  31,  2001.

     We  anticipate  that  our  expenses  relating  to developing, marketing and
supporting  our  current  and future products will increase substantially in the
future.  Accordingly,  for  the  foreseeable  future  we  expect  to  experience
additional  losses as these increased expenses exceed our total revenues.  These
additional  losses  will  increase  our  accumulated  deficit.

OUR  REVENUES  LARGELY  DEPEND  ON  ONE PRODUCT LINE, THE ROBUST HYDROGEN SENSOR
LINE. WE ANTICIPATE THAT THE MAJORITY OF OUR REVENUES WILL BE DERIVED FROM SALES
OF  OUR  HYDROGEN  SENSOR  PRODUCTS.


                                       11
<PAGE>
     Presently,  our  revenues  are  derived from sales of hydrogen sensors fuel
cells, and fees for hydrogen safety services. We expect that the majority of our
2001  revenue  will come from sales of our hydrogen sensor products, with lesser
revenues  from  sales  of  our  fuel  cells  and  hydrogen  safety  services,
respectively.  In the event that 2001 sales of our hydrogen sensor products fail
to  meet  our  expectations,  our  business  and  financial  condition  could be
impaired.

     Currently,  five  other products are under development, including three
sensors  and  two  hydrogen  fuel  cells.  Our  future  financial performance is
dependent,  in  significant  part, upon the successful development, introduction
and  customer  acceptance  of  new  and enhanced versions of the Robust Hydrogen
Sensor,  other hydrogen sensors, our hydrogen fuel cell technologies and related
new  products  that  we  may  develop.  We  cannot  assure  you  that we will be
successful  in upgrading the Robust Hydrogen Sensor or that we will successfully
develop  new  products,  or that any new product will achieve market acceptance.


ECONOMIC, POLITICAL OR MARKET CONDITIONS COULD IMPACT OUR BUSINESS AND CAUSE OUR
REVENUE  TO  BE  LOWER  THAN  ANTICIPATED.

     Our  business  may  be  sensitive to general economic conditions. A reduced
level  of  economic  and  manufacturing  activity  in  the  United  States  may
significantly  and  adversely  affect  the  demand  for  hydrogen  sensors  and
alternative  energy  sources  such  as  fuel  cells. A recession could cause our
customers  to  reduce or postpone their purchases, which could cause our revenue
to  be  lower  than  anticipated  and  negatively  affect  our  business.
FUEL  CELL  TECHNOLOGIES  ARE  NEW AND EVOLVING TECHNOLOGIES, COMPETE WITH OTHER
METHODS  OF  ENERGY  GENERATION,  AND  MAY  NOT  RECEIVE  WIDESPREAD ACCEPTANCE.

     Fuel cell technologies are in their very early stages of commercialization.
Like  many  new  technologies  they  are  characterized  by  rapidly  evolving
technological  developments,  quickly  changing  marketing and sales strategies,
multiple  and  aggressive market participants, fluctuating demand, and uncertain
market  acceptance  for  products  and  services.

     Businesses  and  consumers  remain  uneducated  about  the  benefits  of
alternative  fuel  sources.  This lack of knowledge may delay the acceptance and
penetration  of  our fuel cell products into markets that have historically been
served  by  traditional  fuel  sources.  Businesses  and consumers also have the
option  of  using  other  methods  of  alternative  fuel  generation,  including
carbonate,  phosphoric  acid,  polymer  electrolyte,  or  solid oxide fuel cells
systems,  as  well  as  traditional fossil fuels such as oil and gasoline. These
methods  may  maintain or even increase their acceptance to the detriment of our
hydrogen  fuel  cell  technology.


                                       12
<PAGE>
WE  MAY  NOT BE ABLE TO COMPETE EFFECTIVELY IN THE HYDROGEN SENSOR AND FUEL CELL
MARKETS.

     We compete in both the hydrogen sensor and fuel cell markets. We may not be
able  to  compete  successfully  against  current  and future competitors in our
markets.  The  markets  in  which  we are engaged are new, rapidly evolving, and
intensely  competitive. We expect competition to intensify further in the future
both  from  existing  competitors  and  new market entrants. We believe that our
ability  to  compete depends on many factors both within and beyond our control,
including:

     -    the  ease  of use, performance, features, price and reliability of our
          solutions  as  compared  to  those  of  our  competitors;
     -    the  timing and market acceptance of new solutions and enhancements to
          existing  solutions  developed  by  us  and  our  competitors;
     -    the  quality  of  our  customer  service  and  support;  and
     -    the  effectiveness  of  our  sales  and  marketing  efforts.

     Many  of  our  current  and  potential  competitors  are  likely  to  enjoy
substantial  competitive  advantages,  including:

     -    longer  operating  histories;
     -    greater  name  recognition;
     -    more  extensive  customer  bases;  and
     -    cooperative  relationships  among  themselves or with third parties to
          enhance  their  products.

     Increased  competition  is  likely  to  result in price reductions, reduced
gross  margins  and  loss  of  market  share,  any one of which could impair our
finances  and  business prospects.  We cannot assure you that we will be able to
compete  successfully  against  existing  or  potential  competitors  or  that
competitive  pressures  will  not  materially  impair  our  finances or business
prospects.  We  cannot  assure  you that we will be able to compete successfully
against existing or potential competitors or that competitive pressures will not
materially  impair  our  finances  or  business  prospects.

     The  markets  for  our  products  are  at  a  very  early  stage  of
commercialization,  are  rapidly changing and are characterized by an increasing
number  of  market  entrants.  As  is  typical  for  a  new and rapidly evolving
industry,  demand  for and market acceptance of recently introduced products are
subject  to  a  high  level of uncertainty and risk. Acceptance and usage of our
fuel cells is dependent on continued growth in use of alternative energy sources
by  businesses  and consumers. Businesses that already have invested substantial
resources  in  traditional or other energy sources may be reluctant to adopt new
alternative  sources.  Individuals with established patterns of purchasing goods
and  services  may  be reluctant to alter those patterns. Accordingly, it is not
assured  that  sufficient  demand  for  our products will develop to sustain our
business.


                                       13
<PAGE>
THE  LOSS  OF THE SERVICES OF ONE OR MORE OF OUR KEY PERSONNEL OR OUR FAILURE TO
HIRE,  INTEGRATE OR RETAIN OTHER QUALIFIED PERSONNEL COULD DISRUPT OUR BUSINESS.

     We  depend  upon  the  continued  services and performance of our executive
officers  and  other key employees, particularly John Donohue, our President and
Chief  Executive  Officer, Ronald Ilsley, our Chief Financial Officer, Dr. Johan
(Hans)  Friedericy,  our  Chief  Operating  Officer, David A. Walker founder and
Board of Directors member and David P. Haberman, our Chairman and Executive Vice
President  of Strategic Planning, Technology and Business Development.  While we
currently  carry  "key  person"  insurance  on  the  lives of Messrs. Walker and
Haberman,  the proceeds of such insurance might not adequately compensate us for
the  loss of either of them.  Competition for qualified personnel in technology,
particularly  in  the  fuel  cell industry, is intense and we may not be able to
retain  or hire necessary personnel as a result of the highly specialized nature
of  our  products.  In  addition,  the amount of our limited working capital may
impose  compensation  limitations  on  us that make it difficult to attract and
hire  necessary  employees.

WE  MAY  NOT  BE  ABLE  TO  PROTECT  OUR  INTELLECTUAL  PROPERTY.

     We  regard  the  protection  of  our copyrights, service marks, trademarks,
trade  dress  and  trade secrets as critical to our future success and rely on a
combination  of  copyright,  trademark,  service  mark and trade secret laws and
contractual  restrictions  to  establish  and  protect our proprietary rights in
products  and  services.  If  the  protection  of our trademarks and proprietary
rights  is  inadequate,  our brand and reputation could be impaired and we could
lose  customers.

     We  have  entered  into confidentiality and invention assignment agreements
with  our  employees  and  contractors,  and  nondisclosure  agreements with our
suppliers  and  strategic partners in order to limit access to and disclosure of
its  proprietary  information.  There can be no assurance that these contractual
arrangements or the other steps taken by us to protect our intellectual property
will  prove sufficient to prevent misappropriation of our technology or to deter
independent  third-party  development  of  similar  technologies.

     In  addition,  litigation  may  be  necessary  in the future to enforce our
intellectual  property  rights,  to  protect our trade secrets, to determine the
validity  and  scope  of  the proprietary rights of others, or to defend against
claims  of infringement or invalidity. Because laws protecting certain ownership
rights  in  hydrogen  sensor  and  hydrogen fuel cell products are uncertain and
still  evolving,  we cannot give you any assurance about the future viability or
value  of  any  of  our  current technology ownership rights.   Such litigation,
whether  successful or unsuccessful, could have a material and adverse effect on
our  business,  results  of  operations  or  financial  condition.

     While  we intend to pursue registration of our trademarks and service marks
in  the  U.S.  and internationally, effective trademark, service mark, copyright
and  trade  secret protection may not be available in every country in which our
services  are  made  available  online.  We  do  not  currently own any patented
technology  registered  with  the  United  States  Patent  and Trademark Office.


                                       14
<PAGE>
  Although we do  not  believe  that we infringe the proprietary rights of third
parties,  there  can  be  no  assurance  that  third  parties  will  not  claim
infringement  by  us  with  respect to past, current or future technologies.  We
expect  that  participants  in  our  markets  will  be  increasingly  subject to
infringement  claims  as  the number of services and competitors in our industry
segment  grows.  Any  such  claim,  whether  meritorious  or  not,  could  be
time-consuming,  result  in  costly  litigation, cause service upgrade delays or
require  us  to  enter  into  royalty  or  licensing agreements. Such royalty or
licensing agreements might not be available on terms acceptable to us or at all.
As  a  result,  any  such  claim  could  have a material adverse effect upon our
business,  results  of  operations  and  financial  condition.

GOVERNMENTAL REGULATION OF THE HYDROGEN FUEL CELL AND HYDROGEN SENSOR TECHNOLOGY
MAY  RESTRICT  OUR  BUSINESS.

     Government  regulation  of  the use of hydrogen for industrial applications
and  fuel  cell generation varies greatly from country to country. There is some
risk  that  the United States and other countries will increase their regulation
of  these  technologies  in  the  future. As our products are utilized solely in
connection with hydrogen, any new law or regulation pertaining to the commercial
use  of  hydrogen,  or the application or interpretation of existing laws, could
adversely  impact  our  sales,  increase our cost of doing business or otherwise
have  a  material  and adverse effect on our business, results of operations and
financial  condition.

     DCH  will  be  subject  to  various  federal,  state  and  local  laws  and
regulations  relating to, among other things, land use, safe working conditions,
handling  and  disposal  of  hazardous  and potentially hazardous substances and
emissions  of  pollutants  into the atmosphere. We believe that we have obtained
all  necessary  government  permits and have been in substantial compliance with
all  of  these  applicable  laws  and  regulations.

     Since  1991,  the National Environmental Protection Act (NEPA) has required
that  each  local Department of Energy procurement office file and have approved
by  the  Department  of  Energy in Washington, DC, appropriate documentation for
environmental,  safety  and health impacts with respect to procurement contracts
entered  into  by  that local office.  The costs associated with compliance with
environmental  regulations  may or may not be recovered under existing or future
contracts  to  which  we are a party.  In addition, contract work may be delayed
until  such  approval  is  received.

PRODUCT DEFECTS AND PRODUCT LIABILITY CLAIMS RELATED TO OUR HYDROGEN SENSORS AND
HYDROGEN  FUEL  CELL  PRODUCTS  COULD  EXPOSE  US  TO  SIGNIFICANT  LIABILITY.

     Although  we test our products extensively prior to introduction, we cannot
assure  you  that  our  testing  will  detect  all  serious  defects, errors and
performance  problems  prior to commercial release of our future sensor and fuel
cell  products.  Any  future  defects, errors or performance problems discovered
after  commercial release could result in the diversion of scarce resources away
from  customer  service  and  product  development,  lost  revenues or delays in
customer acceptance of our products and damage to our reputation, which, in each
case,  could  have  a  material  and  adverse effect on our business, results of
operations  or  financial  condition.


                                       15
<PAGE>
     In  addition  to  the  potential  for product defects, hydrogen itself is a
dangerous  gas  under  certain  circumstances.  For  example, hydrogen is highly
explosive when it reaches concentrations in the air of greater than four percent
provided an ignition source is present. The buoyant and highly dispersive nature
of  hydrogen  gas provides challenges in the appropriate location of our sensors
for  effective  hydrogen  detection,  but  by  its nature, makes it difficult to
accumulate levels which reach 4% from leaks. However, an accidental explosion or
fire  from  mishandling  of  our products or due to unforeseen circumstances may
cause damage to our reputation, result in lost sales and revenues, or have other
material  and  adverse  effects  on  our  business.

     We  have  not  experienced  any  product  liability  claims to date. We may
however,  be  subject  to  such  claims in the future. A product liability claim
brought  against  us  could  have a material and adverse effect on our business,
results  of  operations  or  financial  condition.


WE  ARE  HEAVILY RELIANT ON THIRD PARTIES FOR CERTAIN COMPONENTS AND ANY DELAYS,
DEFECTS  OR  OTHER PROBLEMS IN SUPPLYING THESE COMPONENTS COULD ADVERSELY AFFECT
OUR  BUSINESS.

     Currently,  our  CMOS  wafer  process  for  the  hydrogen  sensor  line  is
accomplished  at  Silicon Valley Sensors, Inc., in San Jose, California. We have
purchased  equipment from Honeywell, Inc. that will enable us to process the new
wafers in-house commencing in the second quarter 2001. There can be no assurance
that  our  manufacturing  efforts  will  be  successful  or  cost-effective. Our
manufacturing  partner  ICCI fabricates electronic circuit boards for the Robust
Hydrogen  Sensor.  Sensor  casing  and  other hardware are fabricated by various
small  manufacturers.  Although  delays  in  the  shipment  and  receipt  of our
component  parts  may  occur, historically we have experienced only those delays
that  tend  to  occur  in  the  normal  course  of  business.

     Growth  in the volume of orders for our products may strain the capacity of
these component suppliers, and delays or other problems with component suppliers
could  have a material and adverse effect on our business.  Although we test the
component  parts  that  we receive from our suppliers, we cannot be assured that
our  components  will  be  completely  free  of  all  defects.

THE MARKETS FOR OUR FUEL CELL PRODUCTS ARE AT A VERY EARLY STAGE OF DEVELOPMENT,
ARE  RAPIDLY  CHANGING  AND  ARE CHARACTERIZED BY AN INCREASING NUMBER OF MARKET
ENTRANTS.

     Fuel cell technologies are in their very early stages of commercialization.
Like  many  new  technologies,  they  are  characterized  by  rapidly  evolving
technological  developments,  quickly  changing  marketing and sales strategies,
multiple  and  aggressive market participants, fluctuating demand, and uncertain
market  acceptance  for  products  and  services.


                                       16
<PAGE>
ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK.

     Not  applicable.


                                       17
<PAGE>
PART  II.  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS.

     None

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS.

     Not  applicable.

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES.

     Not  applicable.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS.

     Not  applicable.

ITEM  5.  OTHER  INFORMATION.

         Not  applicable.

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.

     (a)  Exhibits.

     (b)  Reports  on  Form  8-K.

          Not  applicable.


                                       18
<PAGE>
                                   SIGNATURES

         Pursuant  to  the  requirements of the Securities Exchange Act of 1934,
the  Registrant  has  duly  caused this report to be signed on its behalf by the
undersigned,  thereunto  duly  authorized.

                                   DCH  TECHNOLOGY,  INC.


Date     May 10, 2001              By:  ____________________
                                   John  Donohue,
                                   President  &  CEO

                                   By: _____________________
                                   Ronald  Ilsley,
                                   Chief  Financial  Officer
                                   (Principal Accounting and
                                   Financial  Officer)


                                       19
<PAGE>