Ce0.8Sm0.2O1.9 (SDC) powder is impregnated with LaNi0.9Co0.1O3 (LNC) to form a composite anode for solid oxide fuel cells with methanol as fuel. Nanoparticles of Ni-Co alloy are derived from LNC after reduction. The composite anode shows a sufficient electrical conductivity when the weight ratio of Ni to SDC reaches 0.1, which is much lower than the amount of Ni required in conventional Ni-SDC anodes. The aggregation of Ni-Co nanoparticles in the reduced anode is suppressed by the oxide supporter, resulting in an improved catalytic activity. The single cell with LNC-SDC composite anode and SDC-carbonate composite electrolyte exhibits a maximum power density of 872 mW cm(-2) at 700 degrees C with gasified methanol as the fuel, much higher than that of the cell with a NiCo-SDC anode under the same condition. The amount of carbon deposited on the anode in methanol atmosphere decreases with the decline of the LNC content. The cells with LNC-SDC composite anodes exhibit stable performances during a 500-minute discharge period.