In our industry, we must start developing today the technology we will be using 10-20 years down the road. That's why we are working to maintain progress, unaffected by the fluctuations of the business cycle.
Reduction technology, solar energy and building-integrated photovoltaic systems are among the areas we are developing. At our development center in Toulouse, France, we test systems that can help buildings produce as much energy as they use. Further, we work closely with architects to ensure that these solutions are aesthetically rewarding. We also collaborate with universities and external research institutions to improve the efficiency of our building systems solutions.
It is our ambition to be a leader in the development of reduction technology, and our HAL4e technology demonstrates that we are meeting our goal in this field. Intensive efforts are being made to achieve further improvement.
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. We will further streamline our R&D activities during 2011.
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. See Note 14. We have a number of R&D centers in Europe and a Technology & Competence Center in 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 technology leader. The board is headed by President & CEO Svein Richard Brandtzæg.
