adrianhu:Symanski, for the record the Torotrak and/or Flybrid system has already been tested on Buses and, as you say, due to the stop/start nature of buses, has given a fuel improvement of up to 45%.
I am aware that there has been talk of this for many many years, just that I've not seen busses actually running this system commercially. Around where I am (mostly rural - great driving roads!) the best we've got is a bio-diesel bus. You're never sure if the bus is about or the chip van!
To run a bio-diesel on a waste product, such as the used fat from said chip van, is one thing. To grow bio fuels is another. That by the time you've grown and refined the bio materials you're at the point where there was no benefit from it's "green" source.
I believe there's system for caine sugar which are using a mixture of refining the sugar in to alcohol, using the waste product to fire the heating process and at the same time running a turbine to create electricty. Newer systems are running at higher pressures for the turbines so they're generating more electricity and therefore increasing it's efficiency. Unless you have something like this you're wasting your time with a bio-fuel as too much energy is wasted in it's production.