I'm skeptical.
Thermodynamic limits apply. While piston engines aren't near the limits, I'm pretty sure that they're around 50% of the limit and would be very surprised if this engine is over 80% of carnot.
So, the only way this engine can be 2x as efficient is if it runs at a significantly higher temperature (which moves the limit).
And, the only way that it can run without a transmission is if it has a very wide operating range. That's hard to do with combustion. And, unless the engine is both reversible and has torque at zero RPM, they'll need both a clutch and a reverse gear.
If they use it to run a generator, they need to account for the electric motor, said generator, and maybe batteries. See diesel-electric locomotives. The prius combines the electric motor and the generator, but needs a transmission.