Currently our main interest are oxides, their defects, interfaces and surfaces, and reactive processes in biological enzymes and of catalysts. Oxides are protective layers for metals. They are the material of optical fibers in communication technology and they are are crucial for semiconductor industry, as protective and insulating layers. About one-third of all enzymes, the motors of biological cell processes, contain transition metal complexes as active component. The investigation of their function is allows us to understand the underlying workings of nature. Furthermore, we hope to learn from nature new chemical processes for use in industry. The development of new algorithms for the simulation of materials properties is a second line of research pursued in our research group. The department is the distribution site of the CP-PAW code, the original package for ab-initio simulations using the PAW method. In order to meet new challenges in theoretical materials research, there is a continuing effort to enhancing the capabilities of our methodology and to explore new avenues for the description of materials, including multiscale approaches and correlated systems.