An alternate array of Pd/AlN/Si and Al/AlN/Si metal-insulator-semiconductor (MIS) devices has been developed using plasma source molecular beam epitaxy (PSMBE) method for deposition of AlN on Si and magnetron sputtering for deposition of Pd and Al electrodes (via mask) on AlN. Both devices show essentially identical capacitance (C) versus voltage (V) characteristics of the typical MIS capacitor. However, the C-V characteristic of a Pd-device shows a clear shift in the presence hydrogen, while that of an Al-device shows no shift. These sensors were characterized using C(V) and C(time) measurements under varying hydrogen concentration. The effects of oxygen and hydrocarbon gases on the sensors were also studied. The Pd-device responds selectively to hydrogen. These results suggest the possibility of fabricating a balanced sensor structure, which might have significant practical importance, as it would cancel all thermal and material sources of drift in the electrical component of the sensor response.