diff --git a/config.default.yaml b/config.default.yaml
index 2d9f2c63..ffb9cd2e 100644
--- a/config.default.yaml
+++ b/config.default.yaml
@@ -263,9 +263,11 @@ sector:
   biomass_transport: false  # biomass transport between nodes
   conventional_generation: # generator : carrier
     OCGT: gas
+  biomass_to_liquid: false
   biosng: false
 
 
+
 industry:
   St_primary_fraction: 0.3 # fraction of steel produced via primary route versus secondary route (scrap+EAF); today fraction is 0.6
     # 2020: 0.6
@@ -509,6 +511,7 @@ plotting:
     solid biomass for industry CC: '#47411c'
     solid biomass for industry co2 from atmosphere: '#736412'
     solid biomass for industry co2 to stored: '#47411c'
+    biomass to liquid: '#32CD32'
     BioSNG: '#123456'
     # power transmission
     lines: '#6c9459'
diff --git a/doc/release_notes.rst b/doc/release_notes.rst
index f1fb12fe..1d4735ca 100644
--- a/doc/release_notes.rst
+++ b/doc/release_notes.rst
@@ -56,6 +56,10 @@ incorporates retrofitting options to hydrogen.
 
 **New features and functionality**
 
+* option for BioSNG (methane from biomass) with and without CC is added
+
+* option for BtL (Biomass to liquid fuel/oil) with and without CC is added
+
 * Units are assigned to the buses. These only provide a better understanding. The specifications of the units are not taken into account in the optimisation, which means that no automatic conversion of units takes place.
 
 * Option ``retrieve_sector_databundle`` to automatically retrieve and extract data bundle.
diff --git a/scripts/prepare_sector_network.py b/scripts/prepare_sector_network.py
index 7bf19fdc..1f10d36f 100644
--- a/scripts/prepare_sector_network.py
+++ b/scripts/prepare_sector_network.py
@@ -1860,6 +1860,42 @@ def add_biomass(n, costs):
             lifetime=costs.at[key, 'lifetime']
         )
 
+
+    #Solid biomass to liquid fuel
+    if options["biomass_to_liquid"]:
+        n.madd("Link",
+           spatial.biomass.nodes,
+           suffix=" biomass to liquid",
+           bus0=spatial.biomass.nodes,
+           bus1=spatial.oil.nodes,
+           bus2="co2 atmosphere",
+           carrier="biomass to liquid",
+           lifetime=costs.at['BtL', 'lifetime'],
+           efficiency=costs.at['BtL', 'efficiency'],
+           efficiency2=-costs.at['solid biomass', 'CO2 intensity'] + costs.at['BtL', 'CO2 stored'],
+           p_nom_extendable=True,
+           capital_cost=costs.at['BtL', 'fixed'],
+           marginal_cost=costs.at['BtL', 'efficiency']*costs.loc["BtL", "VOM"]
+        )
+
+        #TODO: Update with energy penalty
+        n.madd("Link",
+           spatial.biomass.nodes,
+           suffix=" biomass to liquid CC",
+           bus0=spatial.biomass.nodes,
+           bus1=spatial.oil.nodes,
+           bus2="co2 atmosphere",
+           bus3=spatial.co2.nodes,
+           carrier="biomass to liquid",
+           lifetime=costs.at['BtL', 'lifetime'],
+           efficiency=costs.at['BtL', 'efficiency'],
+           efficiency2=-costs.at['solid biomass', 'CO2 intensity'] + costs.at['BtL', 'CO2 stored'] * (1 - costs.at['BtL', 'capture rate']),
+           efficiency3=costs.at['BtL', 'CO2 stored'] * costs.at['BtL', 'capture rate'],
+           p_nom_extendable=True,
+           capital_cost=costs.at['BtL', 'fixed'] + costs.at['biomass CHP capture', 'fixed'] * costs.at[
+               "BtL", "CO2 stored"],
+           marginal_cost=costs.at['BtL', 'efficiency'] * costs.loc["BtL", "VOM"]
+
     #BioSNG from solid biomass
     if options["biosng"]:
         n.madd("Link",
@@ -1894,6 +1930,7 @@ def add_biomass(n, costs):
             capital_cost=costs.at['BioSNG', 'fixed'] + costs.at['biomass CHP capture', 'fixed'] * costs.at[
                 "BioSNG", "CO2 stored"],
             marginal_cost=costs.at['BioSNG', 'efficiency']*costs.loc["BioSNG", "VOM"]
+
         )