A Tesla battery continues to burn at one of Queensland’s first...

A Tesla battery continues to burn at one of Queensland’s first large-scale battery storage sites after it caught fire last night.

Police were called to the incident in Child’s Avenue in Bouldercombe, about 23 kilometres from Rockhampton at 7:45pm.

Officers said the fire caused hazardous smoke to spill out into the immediate area and nearby residents were urged to stay indoors and keep respiratory medication close by.

Several firefighting crews were called and the fire was contained to a single battery earlier this morning.

Genex Power, which owns and operates the Bouldercombe Battery project, said no-one was at the site at the time of the incident.

"On advice from the Queensland fire brigade and protocols provided by Tesla, the fire is being allowed to burn out under the supervision of the fire brigade," a spokesperson said.

The battery is a lithium Tesla Megapack 2.0 unit and is one of 40 used at the site.

Genex Power said it would work with Tesla to investigate the incident.

Police say the fire does not appear to be suspicious.

Powerlink, which owns the substation next to the facility, says there is no damage to its assets or infrastructure.

The Queensland Fire and Emergency Service said a single crew remains on stand-by.

whoops...hope we are insured ......