Currents Ep316: How Captona is Scaling Energy Transition Assets
Host: Todd Alexander (Norton Rose Fulbright)
Guest: Izzet Bensusan (CEO and Founder, Captona)
Release Date: September 18, 2025
Episode Overview
In this episode, Todd Alexander interviews Izzet Bensusan, CEO and founder of Captona, a firm investing in late-stage utility-scale renewable energy and clean fuel projects across North America. The discussion dives into Captona’s entrepreneurial journey, the evolution of energy transition markets, investment strategies, impact of recent legislation, and where growth and challenges lie in the sector today. The conversation blends technical detail with Izzet’s candid, energetic perspective—plus some unexpected but memorable culinary metaphors.
Key Discussion Points & Insights
Izzet’s Path into Renewables and Captona’s Genesis
- Early Motivation: Izzet’s entrance into renewables was driven by both necessity ("I've never been offered the job, so I had to make my own job." [01:30]) and opportunity, recognizing early the potential of carbon markets with the Kyoto Protocol.
- Evolution of Business: Started with Carbone in 2008 (carbon credits/trading), spun out Carbon Capital Markets for advisory/tax equity, then launched Captona in 2015 as a fully integrated energy transition investment and operating company ([04:00-05:27]).
"Now you have three different companies, one trading the commodities, one investing and operating ... and we have a separate company ... on energy transition market data, AI driven...." [04:54]
The Shifting Market Landscape Post-Reconciliation Bill
- Contrarian Optimism: While many saw uncertainty after the reconciliation bill, Izzet is bullish:
"I think we're facing one of the best markets ... in 17 years, I've seen what people are not seeing." [06:04]
- Lesson from Legislative History: Having weathered eight major law changes, Izzet frames tax credits as just "one piece"—emphasizing adaptability over chasing the pendulum ([06:30]).
- Importance of Bill Provisions: Support for nuclear, ITC for hydro, focus on batteries, and long-term contracts are seen as positives ("Support for nuclear is not a bad thing. It's a great thing." [07:03]).
- Market Misreading:
"The misreading of the bill ... is making a lot of people run for the hills. And I'm saying we're doubling down... best market you can get into." [09:57]
Sectors and Strategies: Where Captona Sees Opportunity and Caution
- Less Attention Areas:
- Components subject to tariffs or trade disputes (e.g., certain solar/battery imports)
- Natural gas ("very hard to get a turbine ... the price is already double, so stay out of it." [12:09])
- Nuclear ("10-year underwriting and going online and 10 years is a long time to see a COD." [12:24])
- Impact of Local Opposition:
- Captona avoids development-phase risk, joining only when projects have "sufficient permitting in place and leases and a line of sight to interconnection" ([13:25]).
- Stresses a "long-term capital" approach versus higher-risk, higher-reward development.
Investment Strategies: M&A and Pioneering Preferred Equity
- Traditional Model: Buy majority stakes in late-stage projects, handle contracts, engineering, O&M, and operate ([14:43]).
- Preferred Equity Structure:
- Captona claims to have pioneered a now-popular approach, letting them be minority equity partners with structured buyouts—designed for flexibility and aligning with both sponsors and investors ([15:15–18:13]).
"Everybody else came to PREF Equity after we pioneered that. ... We did internally design the whole pref equity structure three or four years ago." [15:24]
- Offers both equity investment and operational partnership.
- Broadly applicable, not limited to solar: includes batteries, microgrids, and RNG.
"We're an operator and an investor and we know what it means to invest. We're not like a tax credit player type of guy. We're equity and we bring the others." [19:46]
On IRA Credit Value Absorption & Renewable Project Costs
- Value Capture: Passing of IRA distributed benefits broadly: module suppliers, EPCs, others captured upside in their pricing, not just sponsors ([21:42]).
- Persistent High Labor/Distrbution Costs: Labor is a "component that you have trouble reducing" ([22:10]), distribution charges, and interconnection costs are noted as stubbornly high, potentially shifting focus to regulated utilities.
"Why is it that the cost of my power is only 30% something people don't know, but distribution is 70%?" [22:37]
- Pressure on Future Prices: Expects near-term price decreases for panels (supply/demand) but doubts installation volume will drop as demand (data centers in particular) drives relentless build-out, "at any cost" ([23:36]).
Where Captona is Bullish Now
- Hydro: Especially with new ITC eligibility for repowering older facilities ([24:31]).
- Repowering & Combined Assets: Exploring acquisitions and repowering in solar, especially through preferred equity.
- Hybrid/Coupled Power Plants: Solar + battery + fuel cells, particularly as solutions for surging data center demand.
- RNG (Renewable Natural Gas): Investing in what will be the world's largest diverted food waste RNG plant in NJ ([25:24]).
"All that food we talk about is going to become natural gas right there. ... We can roll up more, build more, and it makes sense." [25:30]
Memorable Quotes & Moments
- Making Your Own Opportunities:
"I've never been offered the job, so I had to make my own job. And it's really a good motivator."
—Izzet Bensusan [01:30] - Endurance Through Cycles:
"I've seen literally eight different versions of [policy changes] ... don't buy into the pendulum ... that's just one of the components."
—Izzet Bensusan [06:04] - Entrepreneurship as Execution:
"People have this idea that entrepreneurship is about the idea. It really isn't. ... I can give you a recipe ... It's really hard to execute on it."
—Izzet Bensusan [17:23] - Food Metaphor for the Preferred Equity Structure:
"You got to sous vide that thing. And then caciopepe ... you have to time it so perfectly. The pepper, the cheese, and the timing of that pasta."
—Izzet Bensusan [17:51] - Pragmatic Approach to Local Risk:
"We don't want to think of that risk. We'll come in and pick and choose... we do stay out of trying to predict. Developers... have a much higher risk tolerance and may have a much higher return. Our business is about deploying long term capital."
—Izzet Bensusan [13:35] - On Market Direction:
"I'm saying we're doubling down, tripling down. This is the best market you can get into..."
—Izzet Bensusan [09:57]
Timestamps for Important Segments
- Izzet’s Entrepreneurial Origin Story: [01:30–04:54]
- Legislative Landscape & Current Market Sentiment: [06:02–10:33]
- Challenging Sectors and Project Risks: [11:09–13:25]
- Captona’s Investment Strategies & Preferred Equity Pioneer: [14:43–20:24]
- Who Captures the Value from IRA Credits? [20:24–23:36]
- Bullish Sectors for Future Growth: [24:31–25:38]
This episode offers a candid and nuanced view into how one of the industry's most active entrepreneurial investors is navigating—and capitalizing on—the shifting sands of US renewable energy markets, with a focus on flexible strategy, operational expertise, and a clear-eyed view of market dynamics beyond policy headlines. Izzet’s candid, analogy-rich style makes for both an informative and entertaining discussion, valuable for anyone interested in how the business of energy transition is actually getting done.