Operations are continuing as normal at the South Hobart Waste Transfer Centre after fire destroyed a building at the tip shop overnight.
Police and fire crews responded to reports of loud bangs at the McRobies Road facility around midnight.
A youth has been questioned and charged over the blaze.
The damage bill from the loss of a shed which had a forklift inside will top $200,000.
"Police are seeking information from any person who may have information relating to this matter and urge them to contact police on 131444 or via crimestoppers (1800 333 000)," said a Tasmania Police statement.
Images: City of Hobart