Emergency services responded to the scene, in Richs Lane behind Kiewa Street, about 10.45pm.

Albury Civic fire station captain John Vandeven said it had taken about 20 minutes to get the blaze under control but he expected crews to remain in place until the early hours of this morning to continue mopping up.

Mr Vandeven said the direction of the wind had ensured residents of nearby men’s shelter Quamby House had not been at risk.

It is not yet known what the shed had housed but Kiewa Street resident Gavin Lascelles, who raised the alarm after smelling smoke, believed it had been vacant in recent months.

“You could see the orange glow through the window,” the TAFE student, 17, said of discovering the fire.

“Within about five minutes ... it was fully engulfed, coming out of the eaves.”

Mr Vandeven said the shed’s unknown contents had made it unsafe for crews to enter.

“The whole thing was going pretty hard and all we could do was an external attack,” he said.

“The sides were iron and timber ... that’s all collapsed in.

“The facade’s still there, which is brick.”

Sgt Paul Goodwin, of Albury police, said it was not yet known if the blaze had been deliberately lit.

Detectives and crime scene examiners are expected to assess the site this morning.

South Albury resident Tyrine Hunter was alerted to the fire by barking dogs.

“There were small explosions as flames burst into the air; onlookers filled Hovell Street to watch the blaze as firefighters put it out

batttling the gusts of wind.”