A blaze at farmland off the Culmore Road has now been brought under control, a representative of the Northern Ireland Fire and Rescue Service has said.
The fire started at around 5am in a large shed containing around 600 tonnes of woodchip.
At the height of the blaze, forty five firefighters were working to contain the fire and to make sure it did not spread to surrounding buildings.
Speaking within the last hour, Assistant Group Commander Warren Kerr said the blaze had now been brought under control but that it would continue to burn for some time.
“Since five o’clock this morning we made a big effort to try and surround the fire on all sides,” he said.
“That has now been completed and we’ve managed to save all the neighbouring properties around the shed.
“The fire is still burning at the minute because of the nature of the contents of the shed, it is actually very, very difficult to extinguish.”