At present, the most commonly used denitration process is the selective catalytic reduction (SCR) method. However, in the SCR method, the service life of the catalyst is short, and the industrial operation cost is high. The selective catalytic oxidation absorption (SCO) method can be used in a low temperature environment, which greatly reduces energy consumption and cost. The C/N ratio of the sludge produced in the wastewater treatment process of the soybean oil plant used in this paper is 9.64, while the C/N ratio of the sludge produced by an urban sewage treatment plant is 10–20. This study shows that the smaller the C/N ratio, the better the denitration efficiency of the catalyst. Therefore, dried oil sludge is used as a catalyst carrier. The influence of different activation times, and LiOH concentrations, on catalyst activity were investigated in this paper. The denitration performance of catalysts prepared by different activation sequences was compared. The catalyst was characterized by Fourier Transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), X-ray photoelectron spectroscopy (XPS), and scanning electron microscope (SEM). The experimental results showed that: (1) When the concentration of the LiOH solution used for activation is 15%, and the activation time is four hours, the denitration effect of the catalyst is the best; (2) the catalyst prepared by activation before plasma roasting has the best catalytic activity.