Novel γ-Al2O3 supported nickel (Ni/Al2O3) catalyst was developed as a functional layer for Ni–ScSZ cermet anode operating on methane fuel. Catalytic tests demonstrated Ni/Al2O3 had high and comparable activity to Ru–CeO2 and much higher activity than the Ni–ScSZ cermet anode for partial oxidation, steam and CO2 reforming of methane to syngas between 750 and 850°C. By adopting Ni/Al2O3 as a catalyst layer, the fuel cell demonstrated a peak power density of 382mWcm−2 at 850°C, more than two times that without the catalyst layer. The Ni/Al2O3 also functioned as a diffusion barrier layer to reduce the methane concentration within the anode; consequently, the operation stability was also greatly improved without coke deposition.