I think the two of you know more about internal engines than I do, but I’ll take shot.
A linear generator or linear engine is not meant to replace a diesel engine. The linear engine is like a gas engine that can ignite by knock.
The linear design is easy to modify and burn a variety of fuels. If I were going to experiment with waste oil and emulsions, this is the engine that I would want.
Also I would bet a lot tricks could be done with the generator coils or air springs for electrical output or tuning.