NewGas Gets $18.2M Debt Facility to Tackle Ghana’s Clean Cooking Energy Gap

Emmanuel Egyei-Mensah, NewGas CEO

NewGas Cylinder Bottling Limited, a subsidiary of Arch Holdings Limited, has secured an US$18.2 million senior debt facility from two leading international investment funds to revolutionise access to clean cooking energy across Ghana.

The facility, jointly provided by the Africa Go Green Fund and Spark+ Africa Fund, will finance the construction and commissioning of NewGas’s state-of-the-art Liquified Petroleum Gas (LPG) bottling plant in Tema, as well as the procurement of cylinders required for nationwide distribution.

The development comes as a major boost to Ghana’s efforts to transition millions of households away from harmful traditional cooking fuels, with as much as 67 percent of the population still relying on wood and charcoal for their daily cooking needs.

NewGas, which operates under the globally recognised Cylinder Recirculation Model endorsed by the World LPG Association, aims to facilitate the transition of three million households to cleaner, safer and more affordable cooking solutions.

Emmanuel Egyei-Mensah, Chief Executive Officer of NewGas, expressed his gratitude for the partnership, stating: “We are deeply grateful to Africa Go Green Fund and Spark+ Africa Fund for their partnership and shared vision for a cleaner, healthier, and more energy-resilient Ghana.”

“This investment marks a major milestone in our journey to transform access to safe and affordable LPG across the country. With this facility, NewGas is not just building infrastructure — we’re building the foundation for a cleaner way of life for millions of Ghanaians. Together, we are igniting a new era of sustainable cooking and energy access,” he added.

The company’s approach addresses key barriers that have historically prevented widespread LPG adoption, including high upfront cylinder costs, while ensuring safety through centralised maintenance and quality control.

The investment is expected to deliver significant benefits to households, with LPG offering 25 percent cost savings compared to traditional fuel sources like charcoal, while eliminating the health risks associated with indoor air pollution from biomass burning.

Laurene Aigrain, Managing Director of Cygnum Capital, which manages the Africa Go Green Fund, praised the initiative, describing it as a big move for a cleaner future.

“We are proud to back NewGas in helping 3 million households in Ghana transition to cleaner cooking fuels. Expanding LPG access is more than just a fuel switch— it’s an investment in public health, environmental sustainability, and economic affordability for families. With better infrastructure and bold action, NewGas is leading the charge for a sustainable energy future in Ghana. Let us make the switch happen,” he said.

Brian McConnell, Vice President for the Africa Region at Enabling Qapital, which manages Spark+ Africa Fund, added: “We are pleased to support NewGas, a leader in expanding consumer access to LPG in Ghana. Our funding will expand access to a high-quality, cleaner and more efficient cooking option for clients under the Cylinder Recirculation Model. NewGas is a natural expansion of Arch’s business lines, generating positive environmental, social and financial returns.”

NewGas is an affiliate of The Quantum Group Limited and benefits from the extensive experience of parent company Arch Holdings, which has operated successfully in Ghana’s oil and gas sector since 2012, with diverse operations across infrastructure, terminals, trading, retail, industrials and energy development.

The transaction received comprehensive technical and Environmental, Social and Governance advisory support from international consultants Hatch and EBS Advisory (now EY), ensuring that all investments align with the highest international standards.

Legal advisory services were provided by leading international law firms Hunton Andrews Kurth and Morgan Lewis Bockius, with local legal support from Keystone Solicitors and Senet Corporate Solicitors.

The Africa Go Green Fund, with committed capital of US$166 million, focuses on supporting climate mitigation activities across Africa, while the US$64 million Spark+ Africa Fund specifically targets scalable clean cooking solutions in Sub-Saharan Africa.

Source: The Business & Financial Times