Palmer Energy Technology acquires Kleandrive business and assets as a going concern through administration, preserving British EV engineering capability

• Palmer Energy Technology Limited (PETL) is co-founded by former Aston Martin CEO, Dr Andy Palmer CMG

• Acquisition of Kleandrive’s business and assets as a going concern through administration retains specialist repowering technology and live customer programmes under PETL’s clean propulsion portfolio

Palmer Energy Technology Limited (PETL), the UK clean energy and battery technology group led by former Aston Martin CEO Andy Palmer CMG, today confirms that it has acquired Kleandrive’s business and assets as a going concernthrough administration. Kleandrive specialises in the conversion of traditional diesel vehicles and replace them with electric drivetrains. The acquisition preserves a specialist British engineering capability in heavy vehicle decarbonisation.

The Essex-based operation specialises in converting legacy diesel buses to fully electric powertrains, an approach that allows fleet operators to decarbonise existing vehicles without the embedded carbon cost or capital outlay of new EV bus procurement.

The acquisition of the business and assets as a going concern through administration will see Kleandrive's repowering capability integrated into the PETL group's wider clean propulsion portfolio. PETL is one of the UK's leading developers of battery and battery management system technology, including through its wholly owned subsidiary Brill Power, a University of Oxford spin-out. The combined business has vertical reach from battery cell selection and management through to powertrain integration, fleet deployment and aftermarket support, giving PETL a direct application channel for its proprietary battery technology in one of the highest impact segments of UK transport decarbonisation.

Heavy duty buses represent one of the most addressable opportunities in UK fleet electrification. The national bus fleet remains heavily diesel powered, despite the government's end of sale date for new diesel buses and operator commitments to zero emission running. Repowering offers a route to electrification at materially lower capital cost than new vehicle procurement, while extending the useful life of existing assets and avoiding the embedded carbon of new manufacture. For local authorities and regional operators working under tight capital constraints and decarbonisation targets, it is often the only commercially viable pathway.

For PETL, the acquisition delivers an immediate operating base in heavy duty EV conversion, a reference deployment platform for its battery and energy management technology, and live commercial relationships with major UK bus operators. It also creates a foundation for expansion into adjacent retrofit applications including coaches, HGVs and specialist commercial vehicles, segments where the economics of repowering versus new build are increasingly favourable.

Andy Palmer CMG, Co-Founder and CEO of Palmer Energy Technology, said:

“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 orbuild 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.”

PETL intends to invest in the acquired capability as part of its wider clean propulsion portfolio. Decisions on the future operating structure and brand identity of the acquired business will be communicated in due course.

ENDS

Notes to editors

• The transaction was completed on a business and assets basis. Palmer Energy Technology Limited has acquired Kleandrive’s business and assets as a going concernthrough administration and has not acquired its pre-completion debts, liabilities or creditor claims. 

• Commercial terms of the transaction are not disclosed.