Flames spread through a scrapyard and came dangerously close to a pile of dumped fridges.
Firefighters feared CFC gases would be released if the fire took hold in what is acknowledged as the fridge mountain of Sussex.
The flames ripped through scrapped cars at a recycling plant near Lewes.
Towering plumes of smoke could be seen from miles away.
Dozens of firefighters used hoses and foam to stop 20ft flames spreading to a mass of fridge components which were waiting to be treated.
Fire crews were called at lunchtime yesterday after reports of vehicles ablaze at MDJ Light Brothers scrap merchants at Greystone Quarry, off the A27 at Southerham, near Lewes.
Police put up signs warning drivers to go slowly past the blaze.
The Environment Agency, which uses the plant, said the fridge components containing ozone-damaging CFC gases were well away from the flames but the fire spread close to bags containing plastic fridge parts.
Agency spokesman John Gower said: "There was no environmental risk of the fridge components being burnt but there is always a risk of run-off water.
"The water used to put out a fire can be contaminated. We are working with the fire brigade to ensure this water is dealt with."
Despite the severe damage, Mr Gower expected the plant to be in operation again by today.
Fire crews from Lewes, Newhaven and Hove fought the blaze, backed by water tankers from Uckfield and Burgess Hill and a pumping unit from Barcombe.
While workers speedily cleared vehicles out of the plant, three cranes were used to move charred debris away from the edge of the flames so it could be doused with water.
Paragliders had a bird's eye view of the fire scene before they came in to land in an adjacent field.
No one at the plant was available for comment.
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