In 2011, research and development costs recognized as an expense amounted to NOK 508 million compared to NOK 543 million in 2010.
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. Our main R&D centers are in Årdal (primary aluminium technology) and Sunndal (alloys and casting) in Norway, Bonn in Germany (rolled products) and Toulouse in France (building systems).
We reviewed our R&D organization in 2011. Starting in 2012, all business areas will be responsible for their own technology development and execution of their respective technology strategies. As part of the new organizational model, a Corporate Technology Office has been established to ensure a holistic and long-term approach to Hydro's technology strategy and agenda.
Within Bauxite & Alumina, we cooperate across the industry and with external research institutes to further develop parts of the production processes and to gain information about different alumina qualities. We are working together with suppliers on process development at our alumina refinery Alunorte.
Hydro's proprietary electrolytic process is one of the most efficient in the world. The primary aluminium plants in Sunndal in Norway and Qatalum in Qatar are using the newest technology. Our next generation technology, HAL4e, is ready for use the next time we build a primary aluminium plant. R&D in Primary Metal is also key in strengthening competitiveness by helping improve the cost position at our primary plants. Prioritized tasks are operational support, implementation of new technology in existing activities as well as development of next-generation electrolysis technology.
We work closely with customers to develop products that save energy and reduce emissions. Aluminium façades can lower operating costs and 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. In 2011, we entered into the partnership Powerhouse, which is aiming to construct an energy-neutral commercial building as far north as Trondheim in Norway.
