Biofuels as a substitution for fossil fuels constitutes one possible greenhouse gas mitigation option. However, there are limitations of and competition over the biomass that could be used. In addition, there are other possible mitigation options that might be more cost efficient to use. For this report, an economic spatial localization model was used to investigate the organization of biofuel production from agricultural land. In particular, the potential of using abandoned agricultural land and the usefulness of using the biofuel as a mitigation option was studied. The results show cost savings with using abandoned agricultural land, while using this type of land can be larger due to land use change emissions. Under a climate target, biofuel from abandoned land can be preferable to other options due to their low costs, despite the potential high emissions. Further research could include implementation of more technologies and a widening to include a larger regional unit and trade effects.