In this study, a novel flow-based method is presented to place catalytic nanoparticles into a reactor by sol-gelation of a porous ceramic consisting of Rh/ceria/zirconia nanoparticles, silica sand, ceramic binder, and a gelation agent. This method allows for the placement of a liquid precursor containing the catalyst into the final reactor geometry without the need of impregnating or coating of a substrate with the catalytic material. The so generated foam-like porous ceramic shows properties highly appropriate for use as catalytic reactor material, e.g., reasonable pressure drop due to its porosity, high thermal and catalytic stability, and excellent catalytic behavior. To investigate the catalytic activity, microreactors containing this foam-like ceramic are employed for the production of hydrogen and carbon monoxide-rich syngas from butane. The effect of operating parameters such as the inlet flow rate on the hydrocarbon processing is analyzed and the limitation of the reactor by diffusion mass transport is investigated. (C) 2009 American Institute of Chemical Engineers AIChE J, 55: 1849-1859, 2009