A quick-acting driver has been hailed a hero after 33 children were safely evacuated from a school bus – carrying 200 litres of fuel – that burst into flames.

Dramatic footage shows the large coach fully engulfed and billowing thick black smoke in the centre of Kiama, a coastal town south of Sydney.

The heat generated from the raging flames caused windows to explode as fire crews battled the blaze.

It took eight firefighters 15 minutes to douse the intense fire, which broke out about 8.45am on the corner of Terralong and Collins Streets.

Fire and Rescue NSW said 33 school children were safely evacuated from the bus.

They had reportedly been bound for Kiama Public School and Saints Peter and Paul Catholic School.

Specialist hazmat crews also attended due to the bus carrying 200 litres of diesel.

“Fortunately, the fuel tanks remained intact, and an assessment of local drains has revealed no contamination as a result of the fire at this stage,” NSWFRS said.

Heavy tow services were arranged to remove the vehicle from the area, and alternative transport was organised for the children.

There were no injuries, and no information is available at this stage on how the fire started.

NSW Police and Ambulance NSW were also in attendance.

The school bus was gutted, but the fuel tanks remained intact. Photo: NSWFRS

A mother of three children said the “hero” driver was well loved.

“I want to publicly thank Gary, who has ensured the safety of my three children as he has taken them to and from school for several years,” Belinda Fagan posted on Facebook.

“Everyone knows and loves Gary the bus driver, due to his kindness and friendly nature. Your efforts today Gary leave me struggling to find appropriate words of thanks.

“To hear from my daughter how you went about ensuring everyone got off the bus safely. You are nothing short of a hero. Thank you.”