The City Impact Church gave away seven tonnes of coal to anyone who wanted it and dozens of locals took up the offer.
Two bags were offered to each household and cars were lining up ready for the giveaway well before the 11am start.
Church co-pastor Liz Taylor said it was the fifth year the church had staged the coal giveaway and it was proving more popular every winter.
"It's our way of giving something back to the community."
The church spent about $500 on the coal but it took less than half an hour for most of the solid fuel to disappear.
Balclutha resident Martin Wilson, who was one of the many grateful locals taking home some free coal, said the gesture was much appreciated, especially as the price of wood and coal continued to soar.
