diff --git a/config/config.default.yaml b/config/config.default.yaml
index 9a4f0de8a..c6a0fb18a 100644
--- a/config/config.default.yaml
+++ b/config/config.default.yaml
@@ -599,8 +599,10 @@ sector:
     central: 1.0
   chp:
     enable: true
-    fuel: gas # for all fuels the same techno economic data from gas CHP is taken
-  micro_chp: false
+    fuel:
+    - solid biomass # For solid biomass, CHP with and without CC are added
+    - gas # For all other fuels the same techno economic data from gas CHP is taken
+    micro_chp: false # Only gas is used for micro_chp
   solar_thermal: true
   solar_cf_correction: 0.788457  # =  >>> 1/1.2683
   marginal_cost_storage: 0. #1e-4
diff --git a/doc/configtables/sector.csv b/doc/configtables/sector.csv
index 26d5a9440..71e149fed 100644
--- a/doc/configtables/sector.csv
+++ b/doc/configtables/sector.csv
@@ -95,8 +95,8 @@ overdimension_heat_generators,,,Add option for overdimensioning heating systems
 -- central,--,float,The factor for overdimensioning (increasing CAPEX) central heating systems
 chp,--,,
 -- enable,--,"{true, false}",Add option for using Combined Heat and Power (CHP)
--- fuel,--,string or list of fuels,"Possible options are all fuels which have an exisitng bus and their CO2 intensity is given in the technology data. Currently possible are ""gas"", ""oil"", ""methanol"", ""lignite"", ""coal"". For all fuels, the techno-economic data from gas CHP is used."
-micro_chp,--,"{true, false}",Add option for using Combined Heat and Power (CHP) for decentral areas.
+-- fuel,--,list of fuels,"Possible options are all fuels which have an existing bus and their CO2 intensity is given in the technology data. Currently possible are ""gas"", ""oil"", ""methanol"", ""lignite"", ""coal"" as well as ""solid biomass"". For all fuels except solid biomass, the techno-economic data from gas CHP is used. For the special case of solid biomass fuel, both CHP plants with and without carbon capture are added."
+-- micro_chp,--,"{true, false}",Add option for using gas-fired Combined Heat and Power (CHP) for decentral areas.
 solar_thermal,--,"{true, false}",Add option for using solar thermal to generate heat.
 solar_cf_correction,--,float,The correction factor for the value provided by the solar thermal profile calculations
 marginal_cost_storage,"currency/MWh ",float,The marginal cost of discharging batteries in distributed grids
diff --git a/doc/release_notes.rst b/doc/release_notes.rst
index 2a2b56a6b..0e7f417db 100644
--- a/doc/release_notes.rst
+++ b/doc/release_notes.rst
@@ -11,7 +11,7 @@ Release Notes
 Upcoming Release
 ================
 
-* Feature: Allow CHPs to use different fuel sources such as gas, oil, coal, and methanol. Note that the cost assumptions are based on a gas CHP.
+* Feature: Allow CHPs to use different fuel sources such as gas, oil, coal, and methanol. Note that the cost assumptions are based on a gas CHP (except for solid biomass-fired CHP).
 
 * Improve `sanitize_carrier`` function by filling in colors of missing carriers with colors mapped after using the function `rename_techs`.
 
diff --git a/scripts/prepare_sector_network.py b/scripts/prepare_sector_network.py
index a815024fd..c7f9b8b3f 100755
--- a/scripts/prepare_sector_network.py
+++ b/scripts/prepare_sector_network.py
@@ -2283,10 +2283,11 @@ def add_heat(n: pypsa.Network, costs: pd.DataFrame, cop: xr.DataArray):
             )
 
         if options["chp"]["enable"] and heat_system == HeatSystem.URBAN_CENTRAL:
-            # add gas CHP; biomass CHP is added in biomass section
-            fuels = options["chp"]["fuel"]
-            fuels = np.atleast_1d(fuels)
-            for fuel in fuels:
+            # add non-biomass CHP; biomass CHP is added in biomass section
+            for fuel in options["chp"]["fuel"]:
+                if fuel == "solid biomass":
+                    # Solid biomass CHP is added in add_biomass
+                    continue
                 fuel_nodes = getattr(spatial, fuel).df
                 n.add(
                     "Link",
@@ -2346,8 +2347,8 @@ def add_heat(n: pypsa.Network, costs: pd.DataFrame, cop: xr.DataArray):
                 )
 
         if (
-            options["chp"]
-            and options["micro_chp"]
+            options["chp"]["enable"]
+            and options["chp"]["micro_chp"]
             and heat_system.value != "urban central"
         ):
             n.add(
@@ -2909,7 +2910,11 @@ def add_biomass(n, costs):
 
     # AC buses with district heating
     urban_central = n.buses.index[n.buses.carrier == "urban central heat"]
-    if not urban_central.empty and options["chp"]:
+    if (
+        not urban_central.empty
+        and options["chp"]["enable"]
+        and ("solid biomass" in options["chp"]["fuel"])
+    ):
         urban_central = urban_central.str[: -len(" urban central heat")]
 
         key = "central solid biomass CHP"