Work on the redevelopment began on March 16 and during the next three months a new store will be built and new underground tanks will be installed, as will more lanes.
''The building has been completely knocked down and the tanks have been removed,'' Z Energy retailer Jonathan Usher said.
''There's a lot of work that has taken place since we left six week ago - it's very exciting.''
The planned store would be use the site in Main South Rd and would have four lanes for refuelling instead of the previous two.
Mr Usher, who operates Z service stations in Mosgiel, Green Island, Dunedin, Palmerston and Oamaru, said the Green Island service station was expected to open in July.
''It is exciting for Green Island and I'm really, really looking forward to the new store opening - it will serve the community much better,'' he said.
''It will have a much larger forecourt. It will be a lot easier to use.''
The addition of more lanes should ease the congestion sometimes seen at the site.
Pay at the pump options would also be available.
Mr Usher said he was ''working through'' how many staff would be required at the service station and no decision was made on whether more staff would be hired.
The new service station was one of many ''exciting'' developments in the area.
''The Green Island community has a lot going for it at the moment,'' he said.
''There's a lot happening in that suburb and I think it's great for that part of town.''
The Z redevelopment follows confirmation last year Progressive Enterprises is to build a new supermarket in Green Island and the Sunnyvale Sports Centre will get a $1.4 million upgrade.
Consent for the Green Island supermarket was granted in August last year and clearing the site is under way. Construction of the 1500sq m facility is expected to be completed later this year.
Moyle's Supervalue Supermarket on the opposite side of Main South Rd will close and the new supermarket will be branded Moyle's Fresh Choice.
Countdown also plans to build a $15 million supermarket in nearby Mosgiel.
