UK clean energy and battery technology company Palmer Energy Technology (PETL) has acquired the business and assets of electric bus repower specialist Kleandrive following the company’s entry into administration.
The acquisition is aimed at maintaining engineering expertise in heavy-duty vehicle electrification while expanding PETL’s presence in the commercial vehicle sector.
Focus on Electric Bus Repowering
Kleandrive specializes in converting diesel buses into battery-electric vehicles through retrofit programs designed to extend vehicle life and reduce fleet emissions.
The company has argued that repowering existing diesel buses can offer a lower-cost alternative to purchasing new battery-electric vehicles while reducing the environmental impact associated with manufacturing replacement vehicles.
The acquisition brings Kleandrive’s retrofit activities into PETL’s broader portfolio of battery and clean propulsion technologies.
Expanding Clean Transport Capabilities
PETL was co-founded by former Aston Martin executive Andy Palmer and focuses on battery technology, battery management systems and electrification solutions.
The company also owns interests in several clean technology businesses, including Brill Power, a University of Oxford spin-out specializing in battery management systems.
According to PETL, integrating Kleandrive’s operations will create a broader offering that spans battery selection, battery management, powertrain integration, fleet deployment and aftermarket support.
The company said the acquisition also provides a potential deployment channel for its proprietary battery technologies in the heavy-duty transport sector.
Heavy-Duty Transport Seen as Growth Opportunity
PETL said buses represent one of the most accessible segments for fleet electrification in the UK.
Although zero-emission bus deployments continue to increase, a large proportion of the UK’s bus fleet remains powered by diesel engines.
The company believes retrofit solutions can provide operators with an additional pathway toward fleet decarbonization while helping manage capital expenditure.
“Repowering existing diesel buses is one of the most cost-effective ways for operators to decarbonise their fleets,” said Andy Palmer, co-founder and CEO of Palmer Energy Technology.
“It deserves to be built here, by British engineers and we intend to make sure it is.”
PETL added that the business could eventually expand into other retrofit sectors, including coaches, heavy goods vehicles and specialized commercial vehicles.
Existing Industry Partnerships
Before entering administration, Kleandrive had secured several projects with UK transport operators.
In 2025, First Bus placed an order for 30 battery-electric repower packages for diesel-powered Wrightbus StreetDeck buses.
FirstGroup Energy also maintains an investment position in PETL and had previously invested in Kleandrive.
Separately, bus manufacturer Alexander Dennis announced plans to work with Kleandrive through its AD Repower initiative.
Following the acquisition, Alexander Dennis said it remains committed to delivering AD Repower conversions and will continue discussions with Kleandrive under its new ownership.
Future Structure Yet to Be Announced
PETL said decisions regarding Kleandrive’s future operating structure and branding will be made at a later date.
The company stated that the acquisition is intended to preserve UK engineering capabilities in vehicle electrification while supporting the continued development of retrofit solutions for commercial transport operators.