Dozens of firefighters are tackling a blaze at a cooking oil recycling centre involving 500 tonnes of kerosene.
Crews were first called to Pelican Food Services at about 10.20pm on Monday, and have since contained the blaze in a unit on an industrial estate, Hereford and Worcester Fire and Rescue Service said.
Inspector Andrew Smith, of West Mercia Police, said there were "no reported casualties" but added "a small number of people" were evacuated from nearby homes.
The fire service currently has eight fire engines at the scene in Barracks Road on the Sandy Lane Industrial Estate, Stourport-on-Severn, Worcestershire.
The fire is affecting an area about 36 by 30 metres (118 by 98 feet) where 60 tonnes of waste oil and up to five propane gas cylinders are being stored, alongside the kerosene.
Area Commander Keith Chance, Hereford and Worcester Fire and Rescue Service, said: "Our crews were met with a very well developed fire.
"The building contained a large amount of flammable material including recycled cooking oil, kerosene and some gas cylinders and it created quite a spectacular site in the sky last night.
"The crews did well. We managed to stop the spread of the fire to two buildings despite the intensity of the fire."
He added the Environment Agency was clearing contaminated oil away from the scene, following the blaze.