MagneMotion, Inc. proposes to design and build a novel shaftless flywheel energy storage system capable of achieving high energy density, long life, and low cost. The concept utilizes a combination of maglev and linear motor technology with a simplified control system, efficient power conversion and a shaftless rotor. If the basic design is proven in Phase I, then the rotor will be expanded to include a wound carbon fiber extremity that has the potential to deliver energy and power densities higher than the best electrochemical systems, but with longer life and less sensitivity to temperature extremes. A single, stationary permanent magnet structure provides both suspension and guidance forces with a control system that adapts the suspension to operate at the most efficient position and also provides damping of unwanted modes. The propulsion system is based on a linear synchronous motor with permanent magnets on the inside of the rotor, and no ferromagnetic material on the stator so the standby losses are very low. The motor provides both power transfer to and from the wheel. The combination of magnetic suspension and linear motor propulsion is adapted directly from MagneMotion's operational hardware for automated transportation.