Pd-zirconia-based monolithic catalysts were prepared with various commercial zirconia raw materials and a natural magnesium silicate binder, sepiolite, for the selective catalytic reduction (SCR) of NO with CH4 in oxygen excess. The different textural properties, metastable tetragonal zirconia phase stability, surface acidity, Pd dispersion and catalytic properties of these monoliths were compared to select the most suitable structured catalyst for NO, control in natural gas-fired power plants. The influence of operating temperature in the two reactions, NO reduction and CH4 combustion, with the monolithic catalysts was determined. A 0.4 wt.% Pd-zirconia catalyst, manufactured from a sulphated zirconium hydroxide raw material, was selected as the most appropriate in the reaction under study, reaching a maximum NO conversion at 400 degreesC. (C) 2003 Elsevier Science B.V. All rights reserved.