diff --git a/rules/build_sector.smk b/rules/build_sector.smk
index 4fe561a8..356abdc5 100644
--- a/rules/build_sector.smk
+++ b/rules/build_sector.smk
@@ -295,7 +295,7 @@ rule build_biomass_potentials:
         "../scripts/build_biomass_potentials.py"
 
 
-if config["sector"]["biomass_transport"]:
+if config["sector"]["biomass_transport"] or config["sector"]["biomass_spatial"]:
 
     rule build_biomass_transport_costs:
         input:
@@ -320,9 +320,8 @@ if config["sector"]["biomass_transport"]:
     build_biomass_transport_costs_output = rules.build_biomass_transport_costs.output
 
 
-if not config["sector"]["biomass_transport"]:
+if not (config["sector"]["biomass_transport"] or config["sector"]["biomass_spatial"]):
     # this is effecively an `else` statement which is however not liked by snakefmt
-
     build_biomass_transport_costs_output = {}
 
 
diff --git a/scripts/prepare_sector_network.py b/scripts/prepare_sector_network.py
index e0afbcd8..0c1faacc 100644
--- a/scripts/prepare_sector_network.py
+++ b/scripts/prepare_sector_network.py
@@ -2156,12 +2156,11 @@ def add_biomass(n, costs):
     )
 
     if options["biomass_transport"]:
-        transport_costs = pd.read_csv(
-            snakemake.input.biomass_transport_costs,
-            index_col=0,
-        ).squeeze()
-
         # add biomass transport
+        transport_costs = pd.read_csv(
+            snakemake.input.biomass_transport_costs, index_col=0
+        )
+        transport_costs = transport_costs.squeeze()
         biomass_transport = create_network_topology(
             n, "biomass transport ", bidirectional=False
         )
@@ -2185,6 +2184,27 @@ def add_biomass(n, costs):
             carrier="solid biomass transport",
         )
 
+    elif options["biomass_spatial"]:
+        # add artificial biomass generators at nodes which include transport costs
+        transport_costs = pd.read_csv(
+            snakemake.input.biomass_transport_costs, index_col=0
+        )
+        transport_costs = transport_costs.squeeze()
+        bus_transport_costs = spatial.biomass.nodes.to_series().apply(
+            lambda x: transport_costs[x[:2]]
+        )
+        average_distance = 200  # km #TODO: validate this assumption
+
+        n.madd(
+            "Generator",
+            spatial.biomass.nodes,
+            bus=spatial.biomass.nodes,
+            carrier="solid biomass",
+            p_nom=10000,
+            marginal_cost=costs.at["solid biomass", "fuel"]
+            + bus_transport_costs * average_distance,
+        )
+
     # AC buses with district heating
     urban_central = n.buses.index[n.buses.carrier == "urban central heat"]
     if not urban_central.empty and options["chp"]: