In microchannel based distillation processes, thin vapor and liquid films are contacted in small channels where mass transfer is diffusion-limited. The microchannel architecture enables improvements in distillation processes. A shorter height equivalent of a theoretical plate (HETP) and therefore a more compact distillation unit can be achieved. A microchannel distillation unit was used to produce a light fraction of JP-8 fuel with reduced sulfur content for use as feed to produce fuel-cell grade hydrogen. The HETP of the microchannel unit is discussed, as well as the effects of process conditions such as feed temperature, flow rate, and reflux ratio.