Many industrial processes generate large amounts of thermal energy throughout the year as waste heat which reduces energy efficiency. In some industrial setups, waste thermal energy is rerouted in industrial parks, however, temperature levels, demand schedule and processes proximity rarely play in favour of this circular approach. Sector coupling opportunities are reduced due to a mismatch between sector demand schedules. To address these challenges the main objective of the MUSPELL project is to develop an efficient Thermal Energy Storage System (TESS) using a hybrid approach with TCM & PCM materials. The main goal is a round trip efficiency of 140-160%, a storage density of 0.5 GJ/m³ at lab-scale. By addressing industrial applications, the current project aims at decarbonising the third most emitting sector in the EU - manufacturing, which is responsible for ~20% of the total GHG emissions in the EU. Developing a versatile and energy dense TESS facilitates deployment within the industrial sector, further enhancing sector coupling capabilities such as cascading industry sectors or coupling industrial parks with district heating, paving the way to flexible and fully integrated energy systems.