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Hydro Annual Report 2011b

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68<br />

vIABIlItY perForMAnCe<br />

Innovation<br />

<strong>Hydro</strong> Recognition Program<br />

The objective of the <strong>Hydro</strong> Recognition Program is to energize all<br />

employees by recognizing excellent work and best-practice sharing.<br />

The winner is an organization or a team that has demonstrated<br />

outstanding effort within the areas of HSE, innovation or<br />

performance. Winners should clearly demonstrate the spirit of The<br />

<strong>Hydro</strong> Way, emphasizing the values of <strong>Hydro</strong> in the way they work.<br />

The first winners of the <strong>Hydro</strong> Recognition Program will be selected<br />

in 2012. The program replaces the President’s HSE Award and<br />

<strong>Hydro</strong> Innovation Award.<br />

We reviewed our R&D organization in 2011. Starting in<br />

2012, all business areas will be responsible for their own technology<br />

development and execution of their respective technology<br />

strategies. As part of the new organizational model, a<br />

corporate technology office has been established to ensure a<br />

holistic and long-term approach to <strong>Hydro</strong>’s technology strategy<br />

and agenda. The technology office will lead an internal<br />

R&D network with representatives from the business areas,<br />

and support the corporate management board in developing<br />

overall research and technology priorities and strategies.<br />

Metal production moving forward<br />

We intend to make production more efficient and to secure the<br />

necessary access to alumina and electrical power. Improvement<br />

efforts revolve around smelter technology and the positioning of<br />

new capacity in locations where there is a surplus of power.<br />

<strong>Hydro</strong>’s proprietary electrolytic process is one of the most efficient<br />

in the world. The primary aluminium plants in Sunndal,<br />

Norway and Qatalum, Qatar are using the newest technology.<br />

Our next-generation technology, HAL4e, is ready for use the<br />

next time we build an aluminium plant, having proven that it<br />

can produce primary aluminium with a specific<br />

Powerhouse alliance<br />

The Powerhouse alliance was founded in 2011. The alliance is<br />

aiming to build the world’s northernmost energy-positive building<br />

– a building that produces more energy than it consumes during<br />

operation – in Norway. In addition to <strong>Hydro</strong>, the alliance includes<br />

the real estate firm Entra Eiendom, the developer Skanska, the<br />

architecture firm Snøhetta and the environmental NGO Zero. The<br />

ambition is to demonstrate that it is possible to develop energypositive<br />

buildings not only in warm climates, but in colder climates<br />

like Norway. Since the alliance was formed, Powerhouse has<br />

started working on two projects in Norway, one rehabilitation project<br />

and one new building. The rehabilitation project is located in the<br />

municipality of Bærum, just outside Oslo, while the new building is<br />

being developed further north, in Trondheim. Eventually, Powerhouse<br />

will build more energy-positive buildings in Norway and abroad.<br />

Powerhouse is therefore interested in establishing contact with<br />

anyone who owns projects or possesses the expertise needed to<br />

expand the development of energy-positive buildings.<br />

The Co-creation Program<br />

In 2011, we established the Co-creation Program, which aims at<br />

securing value creation and the voice of technology throughout<br />

<strong>Hydro</strong>’s value chain. Eleven employees from different parts of <strong>Hydro</strong><br />

are educated to contribute to innovation management competence.<br />

The program includes different tools, with participants trained<br />

to support colleagues working in functions such as technology<br />

development, product development and business development.<br />

The participants represent a diverse professional background and<br />

six nationalities. Two of the participants are female. The Co-creation<br />

Program aims to develop healthy and down-to-earth innovative work<br />

practices that can be utilized across <strong>Hydro</strong>.<br />

energy consumption of 12.5 kWh/kg aluminium. We are now<br />

developing this technology further. HALsee – or HAL super<br />

energy efficient – is targeting a maximum of 12 kWh/kg aluminium.<br />

We are emphasizing cell productivity as well as reduced<br />

energy consumption and climate-gas emissions from the production<br />

process.<br />

R&D in our Primary Metal business is important to strengthening<br />

competitiveness by improving the cost position at our metal<br />

plants. Prioritized tasks are operational support, implementation<br />

of new technology in existing activities and the development<br />

of next-generation electrolysis technology. Because energy<br />

constitutes from one-third to half of total production costs,<br />

energy efficiency is one of the most important ways to reduce<br />

costs, while at the same time reducing the climate footprint.<br />

Our casthouses focus on process efficiency in terms of<br />

improved capacity utilization and process capability. The continuous<br />

improvement of product quality is an important part<br />

of our business concept, and is strongly linked to technical<br />

customer service. We develop our products together with customers,<br />

listening to their needs while improving our own casthouse<br />

processes.<br />

Creating something unique<br />

“The Powerhouse Project is a source of inspiration for us, partly<br />

because the project is unusual and partly because the composition<br />

of partners is unusual. Together we have defined a common goal<br />

and everyone has strived to provide good input at an early stage<br />

of the project. Contact with <strong>Hydro</strong>, even before the project was<br />

established, has also provided inspiration. In Norway we lack<br />

experience from these types of projects, but <strong>Hydro</strong> has been able<br />

to deliver this and in doing so has made everyone more certain that<br />

we will actually succeed.”<br />

Ole Gustavsen,<br />

Partner, Snøhetta<br />

Read full interview at www.hydro.com/reporting2011

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