ASSET final report on sectoral integration

This study identifies the impact of sectoral integration on energy system including the cost and infrastructure requirements of the energy system, in the context of deep decarbonisation in line with the Paris Agreement. The following aspects will be analysed:

• Power to Gas, and the use of H2 and clean gas in decarbonising the natural gas grid
• The use of carbon-free H2 in industry (in high temperature applications in addition to its use as a feedstock in some industrial sectors)
• Linking the power and mobility sector, both via electricity and hydrogen
• Linking the power and heating sector, in buildings and industry
• Analysing strategies which allow to achieve deep decarbonisation and the enabling contribution of power-to-X technologies to produce renewable hydrogen and hydrocarbons.

The study comprises two main tasks:
Task 1 consists of a mapping of the key Power-to-X technologies and an assessment of the techno economic parameters and barriers including associated costs of hydrogen production and the development of a transmission and distribution network. The task aims at improving the understanding of the potential of the various technologies and the interactions between different energy sectors, including the electricity and gas grids. The goal is to define the potentials and limitations of energy storage, serving energy needs in final energy demand and other relevant applications.
The Task consists of five subtasks: 
a) Linking the power and mobility sector & Usage of H2 in transportation,
b) Linking the power sector and H2-demanding industry, 
c) Linking the power and heating sector, 
d) Energy storage and sectoral integration and e) Identifying key regions with local overproduction and excess of renewables.
Task 2 uses systems analysis and modelling to develop narratives about future impact of sectoral integration in the energy system towards 2050, in the context of the deep decarbonisation required by the Paris Agreement. To assess the potential role and contribution of power-to-X technologies and storage under different contexts, three narratives seem relevant: 
a) the ‘hydrogen as an energy carrier’ scenario, 
b) the ‘hydrogen as feedstock’ scenario and 
c) the ‘hydrogen for power storage’ scenario. 
Based on this analysis a balanced scenario and a sensitivity scenario to 2050 are modelled with different assumptions about the development of hydrogen related technologies and the market penetration of hydrogen.
The main results are subject to discussion in the final ‘Discussion’ section. The document also includes a large bibliography on the topic and ends with conclusions and recommendations.