I read this article in a local Texas A&M paper, they're currently using it to make more efficient Air conditioners, but the potential as a car engine looks very promising. Pretty cool stuff.

Full Article

For You Lazy People

Engine Animation

 

I bet the rotary boys will be having a hayday over this one.

 

wooo cool shit.. i have rebuilt/drove many FD3S engines..if this works..it could change the car world..it would be very powerfull.... the more i think about it.. good god..

 

I don't know exactly how it works, but isn't it similar to a rotary engine? Look way cool so far.

 

^ No, a rotary (Wankel) engine is still based on the Otto cycle (just like regular engines - it's just a different implementation).
This engine is based on the Brayton cycle - it is basically an implementation of a gas turbine engine (which is also related to the jet engines in aircraft).
Gas turbine engines have been used on tanks and even some cars, but usually they are no more efficient than regular engines (just higher power-per-weight). This implementation might be different though.