Bellingham fire fighters put out the fire at Northwest Chipping and Grinding on Hannegan Road, and it was barely emitting smoke by 4 p.m.
Rick Sucee with Whatcom Unified Emergency Management says the fire created huge amounts of smoke that hung in the stagnant air over downtown Bellingham until the afternoon.
The wood pile, which is 16 feet tall and 100 feet long by 150 feet wide, was found burning after midnight yesterday.
At one point it was feared the pile of wood would smolder, possibly, for several days.
No injuries or property damage were reported.
Fire crews left the scene but the company maintained a fire watch throughout the night to make sure there were no flare ups.