A new energy storage concept for variable renewable energy, LIQHYSMES, has been proposed which combines the use of LIQuid HYdrogen (LH2) with Superconducting Magnetic Energy Storage (SMES). LH2 with its high volumetric energy density and, compared with compressed hydrogen, increased operational safety is a prime energy carrier for large scale stationary energy storage. But balancing load or supply fluctuations from seconds to several hours with hydrogen alone is difficult due to the response times of the flow control, and an additional short-term electrical energy storage will be needed. For this purpose a compact LIQHYSMES Storage Unit is proposed which integrates the H2 liquefaction part, the LH2 tank and the SMES based on Magnesium Diboride and cooled by the LH2 bath. This allows jointly utilizing the cryogenic infrastructure and reducing the otherwise significant H2 liquefaction losses by introducing a novel process with "cold recovery". Preliminary target numbers for this process, key parameters for a complete LIQHYSMES model plant, simulations on the anticipated buffering behaviour, a loss analysis and a crude cost estimate are given. Copyright (C) 2012, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.