An issue associated with the use of hydrogen peroxide as the oxidant in the so-called alkaline-acid direct ethanol fuel cell (AA-DEFC) is the problem of H 2 O 2 decomposition, which causes a significant decrease in the cathode potential. The present work addresses this issue by developing a bi-functional cathode structure that is composed of the nickel-chromium (Ni–Cr) foam (functioning as the diffusion layer) with a highly dispersed gold particles (functioning as the catalyst layer) deposited onto the skeleton of the foam. This integrated cathode structure allows not only a reduction in H 2 O 2 decomposition, but also an enhancement in the species transport in the cathode of the AA-DEFC. The fuel cell performance characterization shows that the use of the bi-functional cathode structure in the AA-DEFC enables the peak power density to be increased to 200 mW cm −2 from 135 mW cm −2 resulting from the use of the conventional cathode.