The aim of this study is to isolate a highly competent bacterium with potent cellulose degrading capability and a better hydrogen producer. Soil sample from sugarcane bagasse yard was isolated, serially diluted and plated on cellulose specific nutrient agar plate. Four colonies have been isolated in which a single colony has potent cellulose degrading ability and the highest hydrogen productivity of 275.13 mL H2 L-1. The newly isolated bacterium was morphologically and biochemically characterized. The molecular characterization of the bacterium was carried out using 16S rDNA sequencing and the organism was identified as Bacilllus subtilis AuChE413. Proteomic analysis such as MALDI-TOF was carried out to differentiate the isolated Bacillus subtilis from Bacillus thuringiensis and Bacillus amyloliquefaciens. Phylogenetic tree was constructed to analyze the evolutionary relationship among different genus and species with the newly isolated strain.