Clear utilization of low-concentration coal-bed gas (LC-CBG) would save energy, mitigate greenhouse gas emissions, and reduce explosion accidents during a coal-mining process. In this paper, a novel catalyst Ni/BaO/CeO2 (NBC) is developed for CH4 partial oxidation and is used as an independent catalyst layer of a Ni cermet anode. LC-CBG with composition of 30% methane and 70% air is directly fed to the catalyst-modified SOFC to generate electricity. Operated on 30% LC-CBG, the NBC modified cell shows better performance and discharge stability than the conventional cell without the catalyst layer. Gas chromatography (GC) analysis on effluent gases extracted from the operating catalyst-modified cells also indicates a higher CH4 conversion when the cell is fed with 30% LC-CBG than when fed with 3% H2O-humidified methane. Post-mortem micro structures of cell surface were analyzed. The NBC-modified cell has a potential application for fuels containing low concen tration methane and air.