In the early hours of April 16 a 34-year-old man was stopped and searched by police after he was seen acting suspiciously walking down Canal Street.

The man produced a knife, which was seized, and police found an alleged improvised explosive device (IED) on his person.

The Sydney Bomb Disposal Unit was contacted and advice was provided to the arresting police officers that the object was deemed safe enough to take back to the station.

Members of the Sydney Bomb Disposal Unit travelled to Griffith where they rendered the device safe.

As a result of the find, police executed a search warrant on the man's home, which they found was full of gas that appeared to have leaked from a faulty gas heater.

The situation required the attendance of the fire brigade and gas company before the premises were deemed safe.

Police found quantities of materials that they alleged could be used in the manufacturing of an IED and ammunition.

The bomb squad checked it out and rendered it safe; however, it was capable of causing serious injury to persons or property damage.

The accused was refused bail and will go to Griffith Local Court on May 7.

He was charged with possession of an explosive in a public space, armed with the intent to commit an indictable offence, carrying a cutting weapon upon apprehension, possession of ammunition without permit, possession and supply of explosives for an unlawful purpose and use or modify authorised explosives not as prescribed.

Acting crime manager Scott Wilkinson said it was good police work while patrolling in the early hours of the morning when it would be easy to let their guard down.

"It was good to detect the accused in the first place, to follow through with a search and then deal with a hazardous situation with the result that no one was harmed," he said.

"It was good police work from everyone involved."