In a significant step toward addressing Ghana’s reliance on traditional cooking fuels, NewGas Cylinder Bottling Limited, a subsidiary of Arch Holdings Limited, has secured an $18.2 million senior debt facility. The funding, provided by the Africa Go Green Fund and Spark+ Africa Fund, is set to revolutionize access to clean cooking energy across the country.
This financing will enable the construction of NewGas’s cutting-edge Liquefied Petroleum Gas (LPG) bottling plant in Tema and the acquisition of cylinders for nationwide distribution. This initiative aims to transition millions of Ghanaian households from harmful cooking fuels such as wood and charcoal to safer, cleaner, and more affordable LPG solutions. Currently, an estimated 67% of Ghana’s population relies on biomass fuels for daily cooking, exposing families to severe health and environmental risks.
A Bold Vision for Cleaner Energy
NewGas operates under the globally endorsed Cylinder Recirculation Model, a framework lauded by the World LPG Association for its efficiency and safety. With this model, the company plans to transition three million households to clean cooking alternatives.
“This investment marks a pivotal moment in our mission to transform energy access in Ghana,” said Emmanuel Egyei-Mensah, CEO of NewGas. “We are deeply grateful to Africa Go Green Fund and Spark+ Africa Fund for their shared vision of a cleaner and healthier Ghana. Together, we are building the infrastructure for a sustainable future, igniting a new era in energy resilience and accessibility.”
NewGas’s approach mitigates historical barriers to LPG adoption, such as high upfront cylinder costs, while ensuring stringent safety protocols through centralized maintenance and quality control.
Economic and Environmental Impact
The shift to LPG promises multiple benefits for Ghanaian households, including a 25% reduction in cooking costs compared to charcoal and a dramatic decrease in health risks associated with indoor air pollution.
Laurene Aigrain, Managing Director of Cygnum Capital, which manages the Africa Go Green Fund, emphasized the broader implications of the project: “Expanding LPG access is more than a fuel transition—it’s an investment in public health, environmental sustainability, and economic empowerment for families. NewGas’s efforts set a powerful example for sustainable energy development in Africa.”
Brian McConnell, Vice President for Africa at Enabling Qapital, highlighted the project’s alignment with the Spark+ Africa Fund’s goals. “Our funding supports NewGas in providing high-quality, efficient cooking options to millions of Ghanaians. This initiative offers measurable environmental, social, and financial benefits, driving meaningful change across the region.”
A Proven Track Record and Strategic Support
As an affiliate of The Quantum Group Limited, NewGas leverages over a decade of expertise from Arch Holdings, a key player in Ghana’s oil and gas sector since 2012. Arch Holdings has built a reputation for innovation in infrastructure, energy, and industrial development.
The transaction was guided by top-tier advisory firms, including Hatch and EBS Advisory (now EY), ensuring compliance with global Environmental, Social, and Governance (ESG) standards. Legal advisory services were provided by international law firms Hunton Andrews Kurth and Morgan Lewis Bockius, with local counsel from Keystone Solicitors and Senet Corporate Solicitors.
Investing in a Sustainable Future
The Africa Go Green Fund, with a capital pool of $166 million, focuses on climate mitigation across Africa, while the $64 million Spark+ Africa Fund specializes in scalable clean cooking solutions in Sub-Saharan Africa. These investments exemplify a commitment to creating a sustainable, healthier future for millions.
NewGas’s groundbreaking initiative signifies not only a milestone in Ghana’s energy transition but also a model for clean energy solutions across Africa. With bold leadership and innovative strategies, the company is lighting the way for a cleaner, healthier, and more sustainable future.
Story by: Mercy Addai Turkson #ahotoronline.com
