“Outland is extremely proud that Minwind has placed its faith in us to provide operations and maintenance that will fully satisfy their mission needs. We look forward to achieving operational excellence and mission success in support of Minwind’s business objectives,” said Steve Scott, President and COO of Outland.

Minwind’s successful model of community wind development has created economic benefits for rural Minnesotans and Minnesota-based companies. “Outland was a natural choice for Minwind for a few key reasons.  Outland is an authorized North American service provider for the Hansen gearboxes that currently outfit our Minwind turbines. Coupled with their recent achievement of ISO 9001:2008 quality management certification, we know their services will be world-class. Outland was founded by five farmers, so they share Minwind’s commitment to harnessing the potential of renewable energy for the benefit of America’s rural communities,” said Minwind Energy CEO, Mark Willers.

“It is especially important for community-owned wind facilities to develop strong partnerships with organizations who understand the community objectives and provide expertise that allows the owners to effectively manage their risk and assets.  Outland’s skills and perspective are a great match with Minwind’s needs in this respect,” said Minwind’s legal counsel, Jeffrey Paulson.

“All of Minwind projects are based around the idea that local ownership is central to maximizing local benefits, and the projects are intended to both generate new income for farmers and benefit the local community’s economy.  We are proud supporters and partners to a firm that embodies both integrity and excellence,” said Jeremy Krug, Director of Operations at Outland.

About Minwind Energy, LLC

Founded in 2004, Minwind Energy, LLC is a management and development company which oversees the operation of nine independent wind farms, along with a transmission site.  Each independent company is owned by a group of farmers and local business people in Southwest Minnesota, and is committed to developing wind energy to produce electrical power as a revenue base for the regional rural economy.

“We are honored and delighted to provide our O&M expertise to an industry leader like Xcel Energy,” said Steve Scott, President & COO of Outland. “The fact that Grand Meadow is the first wind farm in Minnesota that Xcel Energy owns, makes the O&M agreement all the more meaningful to our team.”

“We’re pleased to award this contract to Outland Renewable Energy, a Minnesota-based firm that is a recognized leader in delivering customized O&M for wind generation owners,” said Lloyd Hilgart, Xcel Energy peaking plant director. “As the number one wind-power providing utility in the United States, we feel Outland’s expertise in wind turbine maintenance is a great asset to Xcel Energy.”

“As a result of winning this contract with Xcel Energy, Outland now operates and maintains more than 700 MWs of installed wind turbine capacity under long-term contract,” said Cam Winton, Outland Renewable Energy’s Director of Project Administration. “We continue to focus on our mission of being a trusted and respected O&M partner through the services we deliver, however big or small the assignment.”

About Xcel Energy

Xcel Energy (NYSE: XEL) is a major U.S. electricity and natural gas company that provides a comprehensive portfolio of energy-related products and services to 3.4 million electricity customers and 1.9 million natural gas customers through its regulated operating companies in eight Western and Midwestern states. Company headquarters are located in Minneapolis. More information is available at xcelenergy.com.

Since 2006, Steve Scott has helped five farmers from Northwest Minnesota grow their wind farm development from a subcontractor-dependent project with no employees or revenue into the fastest-growing renewable energy company based in Minnesota. The company, which develops and services wind farms, expects 175 employees and $20 million in revenue by the end of 2010.

In helping launch Outland, the South Dakota native brought the practical, hands-on wind turbine maintenance experience he’d acquired as partner and executive with Energy Maintenance Services. With that expertise, Scott established Outland Renewable Energy Field Services, which now provides more than 95 percent of Outland’s revenue and supports the “founding” farmers’ original goal of developing wind farms.

The company is currently building farms in four states. Once commissioned, their combined installed capacity could top 1,000 megawatts. Scott has also helped secure more than $14 million in private equity placement to support project development.

Scott calls Outland an “innovator” on the cutting edge of evolving technology in the industry. Outland has recently implemented mobile oil exchange technology to drain, flush, clean and refill gearboxes, and their exclusive training center is unparalleled in the industry. “We’re always looking for bigger, better, faster, more efficient,” he said. “When you’re a company that grows at the rate that we grow, the one constant is that tomorrow’s going to be different than today.”

Scott has worked to keep quality on par with quantity, and that attention to quality management paid off this April, when Outland became the first and only North American wind-energy company to receive ISO 9001:2008 certification.

“That goes back to the type of people that we hire,” said Scott. “I hire good people, I take care of them, but I expect a lot. … I don’t have any option, based on our growth. I gotta keep moving, and so does everyone else in the company.”

Scott says the company is poised to expand its U.S. coverage area to Canada, Mexico and even China. Meanwhile, Outland is moving into another renewable energy market: solar. The company has been developing a solar facility in Minnesota for a couple of years, and Scott sees that market — like wind — as a high-growth area in both  development and services.

- JEREMY STRATTON

CANBY, MN — April 30, 2010 — Outland Renewable Energy (Outland), has entered into a definitive agreement to acquire certain  real estate located adjacent to the Company’s current offices in Canby, Minnesota.  The property being acquired is home to long time Canby business, ‘Sight Sound and Body’ and will  give Outland the space needed to continue long-term growth in the community of Canby.  The Company anticipates the completion of the phase three expansion in the summer of 2010.  With renovations completed, the office will accommodate up to 12 full time permanent employees. Outland completed the second phase of a comprehensive three phase expansion and renovation project in early February of this year.

“We are excited to have a plan for the acquisition of the Sight, Sound and Body property from long standing Main Street business owners, Andy and Jackie Kreuzer.  Main Street is the perfect place for Outland; with favorable demographics, employee growth and technician demands, acquiring the space is part of our broader business strategy of making Outland more accessible to the community and responding to our growing business needs. We believe expanding this office will  assist in Canby’s economic development, and in turn, provide a positive work experience for our staff,” said Steve Scott, President and Chief Operating Officer of  Outland.

“Plans for expansion include a complete renovation of the  main floor and in the process, create  more office and meeting room space for our accounting group.   As a high-growth organization, we continue to monitor and evaluate our long term office and warehouse space needs while maintaining a long-term commitment to Yellow Medicine County,” said Deb Vanderostyne, Director of Human Resources and Risk Management for Outland.

“Energy efficiency is high on the list of priorities everywhere.  Seeing how a business like Outland makes a difference through its work and commitment to renewables is extremely gratifying for the city of Canby.  Their Phase III expansion is an exciting time for both its employees and community members of the city.  We are very fortunate Outland has chosen our city to call home,” said Canby Mayor Gene Bies.  Representative Andrew Falk added, “Outland has a great reputation internationally and that reputation is evidenced locally too.  The company’s leadership have been great stewards and engaged community members of the area. Outland fits well with Canby’s long term plan to bring in and sustain businesses that offer our community great staff, viability and development.”

Development business stalled for energy firm, but service business thrives

When the wind shifted on Outland Renewable Energy, the wind farm developer shifted right back. The result? Business took flight.

Canby-based Outland changed its emphasis from project development to servicing existing farms and found itself in a booming industry. The private company’s revenue has soared from $400,000 in 2006 to more than $15 million last year, President and Chief Operating Officer Steve Scott said.

While other companies suffered as capital dried up in the recession, Scott said Outland was benefitting as existing wind farms’ warranties ran out on their equipment. The firm saw an opportunity and jumped on it.

“If there’s a commercial wind farm, we have technicians that have, or are, or will be in the area,” Scott said. The company’s service branch, Outland Renewable Energy Field Services, now has 140 employees nationwide and wants to hire another 40 to 50 full-time employees by year’s end. Outland’s other branch, Outland Renewable Energy Development Services only has a handful of employees dedicated to developing new projects.

Winner of the ‘gold rush’
Leon Steinberg, CEO of Minneapolis-based community wind developer National Wind, said that companies like Outland are the big winners of the wind energy market.

“I made the comparison to the gold rush days,” Steinberg said. “It wasn’t the miners that were making the money consistently, it was the ones selling picks to the miners that were doing well, or the Levi’s jeans.”

Jeff Wright, president of Midwest Wind Finance called Outland’s business model a “smart move,” at the right time.

On top of the recession’s credit crunch, an unsuspected, temporary obstacle came with the American Recovery and Reinvestment Act, commonly known as the stimulus bill.

The bill “froze the industry for awhile” in early-2009 when subsidies were announced for clean energy projects, and creditors held back, waiting for the funds, Wright said.

When the markets “slammed shut” an major federal funding didn’t come out until August, new capital “was nonexistent,” Steinberg said.

But companies like Outland that serviced existing farms were in the clear. During this same time period, Outland tripled in size as it hired to keep up with industry demand.

“The market for maintenance services has grown and will continue to grow,” Scott said. The company manages more than 600 megawatts of electricity, making it one of the largest wind energy operation and service firms in the country.

Future breezes seem strong for industry
Many Minnesota company leaders feel optimistic about the future of wind. After the learning curve on the stimulus funding was overcome and the market picked up, 2009 became a record year of growth for U.S. wind power.

The American Wind Energy Association said that cumulative wind energy production grew 40 percent in 2009, according to its annual report from that year.

“I think it will definitely pick up again,” said Mark Willers, CEO of Luverne-based Minwind Energy and former chairman of several United States Department of Agriculture committees.

Willers, as well as other company leaders across Minnesota, think foreign interest in the growing U.S. market, as well as a prevailing appreciation of clean energy in the nation’s current politics, will help build back wind farm development and keep farm maintenance and operation profitable.

This article appeared in Volume 27, Number 42 of the Minneapolis/St. Paul Business Journal on March 19, 2010, page 16.

ISO 9001:2008 is a globally-accepted quality management standard codified by the Geneva-based International Organization for Standardization. To achieve ISO 9001:2008 certification, Outland had to demonstrate to an accredited independent auditor that it tracks and continuously improves the quality of services it provides to wind turbine owners. Outland’s ISO 9001:2008 certification provides customers with objective proof that Outland’s quality management system complies with the ISO’s rigorous standards.

The milestone was noticed by many throughout Minnesota, including Governor Tim Pawlenty. “This is a great achievement for Outland and it sets an excellent example for other companies. Minnesota is among the nation’s top states in the production of wind energy and companies like Outland will ensure that we continue to play a leading role in this growing industry.” Governor Pawlenty said.

“Quality matters when maintaining  complex, multi-million dollar wind turbines sitting more than 250 feet above ground level. Achieving ISO 9001:2008 certification ensures that Outland’s O&M services consistently exceed our customers’ expectations. Our quality management system assures the integrity of our processes and reinforces the confidence that our clients have placed in us. We have a tireless and loyal team, and this certification is a reflection of their work on behalf of our customers and shareholders,” stated Steve Scott, President and COO of Outland.

“The wind energy services industry is growing rapidly as the U.S. embraces wind as part of its energy mix,” said Cam Winton, Director of Project Administration and in-house counsel, who added, “As the first U.S.-based wind energy O&M company to achieve ISO 9001:2008 certification, Outland is well-positioned to continue its leadership role in the industry.”

In response to Outland’s certification, Luc De Proost, Chief Business Development Officer of Hansen Transmissions International (an ISO 9001:2000 certified company) said, “Our cooperation with Outland has been a wonderful experience so far. As the first U.S.-based third-party maintenance company in the wind industry to achieve this certification, Outland clearly demonstrates its commitment to quality and the importance of continuous improvement.”

by Deb Gau

Since opening its headquarters in Canby, Outland Renewable Energy has spread its wings nationally

What started as a home-grown wind energy developer has become a company with a national reach at Outland Renewable Energy. The conversion of a former implement dealership along Minnesota Highway 68 in Canby into an office, warehouse and shop is only part of the story, said Outland President and COO Steve Scott.

“It has been exceptionally rewarding, being part of something that started from scratch,” Scott said. “And we’ve been working with a great group of people.”

Outland was formed in 2005 by a group of “founding farmers” from the Tracy area, Scott said. The business started with the goal of developing wind farms, but it also expanded into a service business for existing wind turbines.

“We’ve had a pretty good run,” Scott said. He estimated that the whole company has grown from about a dozen employees in 2006 to around 150. That includes staff who work at Outland’s offices in Canby and Eagan, as well as turbine service technicians who travel throughout the country.

In looking for a headquarters for Outland’s field service division, Scott said the company chose a former John Deere dealership. Outland has completed two phases of remodeling on the building, Scott said.

“That was when we established a shop area for working on [wind turbine] gearboxes,” he said. The shop area functions as a “clean room,” although not quite the same kind of clean room used for manufacturing computer chips.

“We just had to have a controlled environment. You don’t want a lot of dust and dirt getting into the garbox bearings,” Scott said. “We have a small group of specialized technicians who work there every day.”

Canby was a good location for a couple of reasons, Scott said. First, Outland would have access to an educated, high quality workforce. Second, “We have pretty much everything we need right here in town.” Overhead costs are low, and with modern communication systems, you don’t need to be in a big city to run a business.

The next phase of expansion at Outland’s Canby location will add more offices to the facility, Scott said.

In the meantime, Outland’s business has grown nationwide. The field service division has been awarded some major service contracts, Scott said.

In the future, he said Outland plans to look into the development and service of solar energy farms as well.

There’s still more room to grow in solar energy, he said.

“Solar farms don’t have to have as heavy an infrastructure, and they have easier maintenance,” Scott said.

“There’s a long-term trend for energy growth.”