Magtube proposes to develop a new class of inertial energy storage unit capable of very high energy capacity and power output in a far smaller package than is possible with any currently available technology. We have developed a novel concept that eliminates the primary failure modes of composite flywheels and allows nearly unlimited scalability. We will survey Navy operational requirements to develop target specifications for a prototype unit. We will then develop a design for the prototype, analyze critical components, build a test device to verify computed characteristics, estimate the size, weight, performance and cost of the prototype, and produce a solid model drawing with all components in place. Preliminary estimates suggest the possibility of constructing a 1 GJ, 100 MW unit with a total volume of less than 4 cubic meters