The fire was largely contained but hotspots remained in the palm kernel being stored inside the Freight Haulage building on Lake St, a Fire and Emergency New Zealand spokesman said.
Two crews were on site to dampen hotspots after yesterday afternoon's fire which at its peak was being fought by 40 firefighters using nine fire trucks.
Fire and Emergency would work with the building owner to bring in heavy machinery this morning to start safely clearing the palm kernel.
Yesterday an alarm was activated at the storage facility about 4.25pm.
The billowing thick black smoke could be seen from kilometres away.
As firefighters responded, 111 calls were received saying the building was on fire and the crews saw the dark plumes emanating from their destination.
Further appliances were called for, and upon arrival firefighters discovered a 50m by 30m warehouse, used to store palm kernel, was well alight.
Fire crews were working defensively to keep the fire contained inside the Lake Rd cordon.
Senior Constable Colin Johansen, of Invercargill, said as far as he was aware no people had been hurt and all staff had been evacuated immediately.
The building on fire belonged to Freight Haulage, he said.
A neighbour said she had been about 100m from the warehouse when the fire started and the smoke smelt a bit like sulphur — and certainly not like anything she had ever smelt before.
Another witness said the roof of the warehouse collapsed about 6pm.
