Highly porous NiO–gadolinium-doped ceria (GDC) nano-composite powders are synthesized by a one-pot glycine nitrate process and applied to the fabrication of Ni–YSZ (yttria-stabilized zirconia)-supported tubular solid oxide fuel cells (SOFCs) with a cell configuration of Ni–YSZ/Ni/Ni–GDC/GDC/LSCF (La0.6Sr0.4Co0.2Fe0.8O3−δ)–GDC/LSCF. The power density of the cell is as high as 413 mW cm−2 at 600 °C, which is 1.37 times higher than that of an identically configured cell fabricated using ball milling-derived NiO–GDC powders (301 mW cm−2). The high porosity of the powders and the good mixing between the NiO and GDC primary nanoparticles due to the abrupt combustion of the precursors effectively suppress the densification, coarsening, and agglomeration of NiO and GDC particles during sintering, resulting in a highly porous Ni–GDC anode layer with good dispersion of Ni and GDC particles and a cell with significantly enhanced power density.