Teignbridge District Council said the 30ft (9.1m) fin whale on Red Rock Beach near Dawlish is being taken apart in small pieces by dumper trucks.
A local rendering plant will remove the oil from the carcass and cook the remaining body.
This will then be shipped to various sites around the country to be used for biofuel.
Councillor Humphrey Clemens said: "It will be taken to a rendering plant where the oil will be squeezed out of it and the carcass cooked down.
"The whole carcass will be used for bio fuels".
The site on Red Rock Beach near Dawlish has been cordoned off and a screen has been erected around the remains to keep the public away.
The whale washed up on the beach on Thursday.
The carcass of a dead whale which washed up on the Devon coastline is to be used for biofuel.