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In this paper, a novel cost-effective air hybrid powertrain concept for buses and commercial vehicles, Brunel Regenerative Engine Braking Device (RegenEBD) technology, is presented and its performance during the braking process is analysed using the Ricardo WAVE engine simulation programme. RegenEBD is designed to convert kinetic energy into pneumatic energy in the compressed air saved in an air tank. Its operation is achieved by using a production engine braking device and a proprietary intake system design. During the braking operation, the engine switches from the firing mode to the compressor mode by keeping the intake valves from fully closed throughout the four-strokes by installing the Variable Valve Exhaust Brake (VVEB) device on the intake valves. As a result, the induced air could be compressed through the opening gap of intake valves into the air tank through the modified intake system.