Two members of the World Bank have committed $517 million (£428.4m) for a clean gas project in Ghana.
The IFC and MIGA have pledged to support the offshore Sankofa Gas Project, which hopes to provide a reliable and affordable energy supply in the West African nation.
The 1,000MW of capacity will help to displace heavy oil-fired generation in the region.
Once it begins production in early 2018, it is expected to reduce Carbon Dioxide emissions by 1.6 million tonnes annually, the equivalent to taking 1.2 million cars off the road.
The project is forecast to cost a total of $7.7 billion (£6.4bn) and will be developed by Vital Ghana, Eni Ghana and the National Petroleum Corporation of Ghana.
Phlippe Le Houérou, IFC Executive Vice President and CEO, said: “Ghana will require significant power generation and infrastructure to meet the growing needs of its young and expanding population.
“This project demonstrates that private capital can be mobilized on a large scale to contribute to the country’s energy security. Developing Ghana’s domestic natural gas resources will help the country reduce carbon emissions and provide a clean source of power for generations.”
It is expected to generate $2.3 billion (£1.91bn) in revenues for the government each year and help solve the country’s gas constraint issues.
Total World Bank financing for the project is $1.2 billion (£1bn).