A fiery accident at a boatyard in Sheepshead Bay Tuesday could have ended in disaster after a boat with a full tank of gasoline was thrown out and caught fire inside a dumpster.

The fire broke out just after 11:30 a.m. at Futura Yacht & Ship Building on Knapp Street.

FDNY Deputy Chief John Russell says someone at the boatyard threw out the boat without realizing it was still full of gasoline.

“The main concern here was the hazardous condition,” said Russell. “We were told there may have been up to about 100 gallons of gasoline, and we’re so close to the water.”

Firefighters quickly responded to put out the flames, while hazmat teams were called in to handle the fuel. Crews had to cut into the boat’s tank to safely drain the gasoline and prevent an explosion.

The boatyard shares space with the seafood market Lobster Harbor and a busy marina, where many locals dock their boats.

Tour guide Todd Grubb said he had just returned from a fishing trip with a group of children when the fire started.

“The first thing was just worrying about the kids,” said Grubb. “We noticed the fire, firetrucks and a bunch of commotion. We had to move our boat to another dock, just to get all the kids off safely. They were freaking out.”

FDNY officials say the quick response helped prevent serious damage or injury, and that no one was hurt.

Environmental concerns were also top of mind for hazmat crews on scene.

“We don’t want to do any damage to the environment,” said Russell. “We’re trying to keep everybody safe without doing any damage.”

It’s still unclear who discarded the boat. News 12 reached out to the FDNY for more information and is waiting to hear back.