Whats the cheap alternate way of producing hydrogen apart from natural gas?

Methane to methanol and second Product you will get H2 . which will be costless.  Monomers from Ethane to Ethene or Ethylene and so one , you will get monomer also free of Cost H2.

It can be produce through the electrolysis of water H2O, ie. Passing of H2O through Electrolysis process that will break H2O to it molecules where H2 and Oxygen will be formed .

Without knowledge of what facilities you are to bring to this problem, it is not easy to answer or defines the parameters.

Electrolysis of water, steam reforming of hydrocarbons and auto-thermal processes are usual methods for hydrogen gas production, but these methods are often not cost-effective owing to high energy requirements. Biological production of hydrogen gas has significant advantages over chemical methods. The common and reliable biological processes utilised for hydrogen gas production are bio-photolysis of water by algae, dark and photo-fermentation of organic materials, usually carbohydrates by bacteria. Sequential dark and photo-fermentation process is one of the newer approaches for bio-hydrogen production. One of the major problems in dark and photo-fermentative hydrogen production is the raw material cost. Carbohydrate rich, nitrogen deficient solid wastes such as cellulose and starch containing agricultural and food industry wastes and some food industry wastewaters such as cheese whey, olive mill and bakers yeast industry wastewaters can be used for hydrogen production by using suitable bio-process technologies. Therefore employing industrial or agricultural waste for hydrogen production can provide inexpensive energy generation with simultaneous waste treatment. Other more recent research is based around using the natural process of photosynthesis.

I would suggest a Google search "hydrogen from biomass" to get you started. Please note that it is not just the actual production of hydrogen but you also need to consider purity requirements, separation/filtration, storage and safety aspects.

yes