In 2010 the research and development costs recognized as an expense amounted to NOK 543 million compared to NOK 690 million in 2009. The reduction of the expensed R&D costs is partly offset by an increase in capitalized development costs. Divestment of Hydro's automotive structures activities in 2009 also involved a reduction in R&D expenses.
The greater part of our R&D expenses goes to our in-house research organization, while the remainder supports work carried out at external institutions. We have a number of R&D centers in Europe and a Technology & Competence Center in Doha, Qatar. Our main R&D tasks are connected to smelter technology and product development.
The Hydro Technology Board aims at enhancing innovation and ensuring that we live up to our ambition to be a leader in technology. The board is headed by President & CEO Svein Richard Brandtzæg.
Hydro's proprietary electrolytic process is one of the most efficient in the world. It is used in the newest operations in Sunndal and at Qatalum. Moreover, it has been further enhanced through our HAL4e technology. Our next-generation technologies are advancing us further, increasing output while reducing electricity consumption and recycling energy from the production process. These technologies also address the challenge of capturing greenhouse gases from the production process.
As a part of Primary Metal's target to improve competitiveness by USD 300 per metric ton of primary aluminium, we also plan to streamline our R&D activities. The main aim of R&D in Primary Metal will still be to help to improve the cost position in primary production and to deliver new smelters in the first quartile at a competitive capital cost. The main activities will be Qatalum, operational support, technology development and technology spin-offs.
We work closely with our customers to develop products that save energy and reduce emissions. Aluminium facades enable lower operating costs and can help buildings produce as much energy as they consume during operation. The energy neutrality is achieved by using heat pumps, integrated photovoltaic systems and intelligent building design. We have constructed in Hydro three such buildings - in Germany, France and India.
