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A novel energy storage system based on a SMES cooled by cryogenic fuel is being developed at the Dept. of Electrical Engineering of the University of Bologna. The system represents an alternative solution with respect to nowadays battery packs for the storage of electrical energy with large specific power. The device may find suitable application on board of road vehicles fed by liquid hydrogen with hybrid power-train (internal combustion engine and electric motor/generation), where a cryogenic tank is already present and no additional cryogenic costs are needed. The housing of the SMES inside the tank used for fuel storage, allows the exploitation of the thermal power required for the continuous evaporation of fuel for feeding the engine to remove the AC losses from the magnet, thus avoiding the need of externally supplied cooling power. In this paper both the design of the magnet and its operation in combination with electronic converter and electric motor/generator during charge/discharge cycles are discussed. Moreover the ongoing activity for the development of a laboratory-scale prototype using MgB2 superconductor is presented. [ABSTRACT FROM AUTHOR]