Bus repower specialist Kleandrive has been bought out of administration by Palmer Energy Technology Limited in a deal that includes business and assets as a going concern.
Kleandrive fell into administration in late May. Palmer Energy says the purchase “preserves a specialist British engineering capability in heavy vehicle decarbonisation.” It adds that the deal gives a foundation for expansion of repower into other commercial vehicle segments, potentially including coaches.
Palmer Energy Technology plans to invest in the acquired capability as part of its wider clean propulsion portfolio. Decisions on future operating structure and brand identity of the Kleandrive business will be made in due course. The buyer is a leading developer of battery and battery management system technology, including through subsidiary Brill Power.
FirstGroup Energy holds a lead investor position in Palmer Energy Technology and earlier made a £1 million investment in Kleandrive. In mid-2025, First Bus placed an order for 30 battery-electric repower packages from Kleandrive for Wrightbus StreetDeck diesels.
Speaking about the purchase, Palmer Energy Technology co-founder and CEO Dr Andy Palmer says: “Britain keeps losing its industrial base one company at a time. I have spent years making the public argument that the UK cannot meet its decarbonisation targets or build a credible clean transport sector without homegrown businesses leading the way.
“This acquisition of Kleandrive’s business and assets as a going concern is a small but practical example of acting on that argument. Repowering existing diesel buses is one of the most cost-effective ways for operators to decarbonise their fleets. It deserves to be built here by British engineers, and we intend to make sure it is.”
Alexander Dennis previously announced plans to work with Kleandrive under the AD Repower brand. Following sale of Kleandrive to Palmer Energy Technology, the bus builder has said that it “is looking forward to understanding Kleandrive’s plans under new ownership. We remain committed to delivering AD Repower conversions for interested operators.”
The combined business will give Palmer Energy Technology “vertical reach from battery cell selection and management through to powertrain integration, fleet deployment and aftermarket support” to deliver “a direct application channel for its proprietary battery technology in one of the highest impact segments of UK transport decarbonisation.”
Palmer Energy Technology believes that heavy-duty buses are one of the most addressable opportunities in UK fleet electrification, with repower giving a route to electrification at materially lower capital cost than new vehicle procurement.
It goes as far as saying that repower “is often the only commercially viable pathway” to zero-emission for local authorities and regional bus operators working under tight capital constraints and decarbonisation targets.
