After a nearly seven hour battle the flames are out at the Grayling Cogeneration plant.
A water plane helped fight the fire and could be seen refilling in Lake Margrethe.
The Grayling fire chief says a pile of wood chips caught fire around 2:20 Sunday afternoon.
It's believed a bulldozer used to move the chips sparked the fire that quickly spread to the rest of the pile.
The strong winds pushed the flames to a small wooded area nearby.
40 people battled the fire which was put out around 9:30 Sunday evening.