This project aims to establish key hard technologies for large-scale high-temperature superconducting (HTS) rotating machines for a ship propulsion system. Using HTS technology, compact, right weighted and highly efficient ship propulsion motors can be realized. The objectives of the project are R&D of robust and reliable HTS field coils with low loss,and compact cooling systems integrated to a rotor and design technology for a 20 MW-class ship propulsion motor. This project is now in the first year of the stage III; stage II was completed in the last Japanese fiscal year. This report reviews the R&D results in stage II and the plans in stage III.