Increasingly, Surface Combatants are adopting Electrical Direct Current DC Power Distribution technology, and feature distributed power generation and energy storage. Direct Current DC Power Distribution supplies power for mission, propulsion, and hotel loads, while meeting the survivability requirements of naval applications. Retaining a certain amount of energy storage in those systems is critical to support the highly dynamic loads and system reconfiguration requirements of naval applications, and the Direct Current DC Power Distribution does this all while performing at significantly higher fuel efficiencies than conventionally powered vessels. Furthermore, energy storage technology selection is a holistic process, and safety characteristics of Li-ion batteries are a major concern for Navies. This paper first establishes the need for DC power distribution systems based on the advanced power requirements of current surface combatants. Then, it derives the energy storage characteristics, such as power, energy, cycling, size, weight, and cost for these vessels. The paper then explores the structured process that establishes criteria and evaluates the different aspects of the available technologies. As part of this process, the safety aspects will be described holistically from battery chemistry to cooling methods to FIFI and battery room demands. This process presents the energy storage technology selected for NATO Surface Combatants, and this technology is now being utilized on several Surface Combatants currently under construction within NATO Europe.