The former HMCS Algonquin caught fire Wednesday at the Port Mersey Commercial Park.
The Iroquois-class destroyer was brought to Queens County to be recycled by Antigonish based company R.J MacIsaac Construction Ltd.
Liverpool Fire Chief Stephen Parnell says the fire started in the electrical room.
He says it appears to have been caused by cutting torches being used by crew during the ship dismantling process.
Parnell says it took about two hours to put out.
This is this is the fourth fire to break out on a ship being recycled by R.J. Macisaac in the last three months.
The last one was two weeks ago on the former HMCS Protecteur.
An official at the park says an investigation has begun.
