Optimum ceria content in nickel ceria composite anode catalyst from the point of discharge performance is discussed. The ohmic loss increased when the ceria content was higher than 30 mol%. Even though the electrical conductivity of the anode decreased with increasing ceria content in the anode catalyst in association with decreasing nickel content, the ohmic loss was kept low until the ceria content was <= 30 mol% because the semiconducting ceria compensated for the decreased current path owing to the decreasing nickel content, The lowest activation loss was observed when the ceria content in the nickel anode catalyst was 30 mol% and the maximum activation loss was obtained for ceria content of 2 mol%. Ceria content in nickel anode influenced microstructure of the anode matrix. When the CeO2 content was 2 mol%, sintering of anode catalyst was evident and the porosity of anode matrix was almost 57% - highest in this study. Whereas sintering of anode catalyst was not evident and the porosity of anode matrix was 46% when the ceria content in the nickel anode catalyst was 30 mol%. Activation loss was strongly influenced by microstructure of anode matrix, and highest activation loss when the CeO2 content was 2 mol% was owing to the inappropriate microstructure for electrochemical reaction: sintering of the anode catalyst and excessive porosity of the anode. (C) 2017 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.