I would suggest doing some research on using superworms to eat styrofoam. Apparently they subsist on it happily and consume it very fast. I don't know if the worms are then toxic or what, but this seems like an area worthy of research within a smaller budget.
unfortunately it don't sound like the worms would be profitable, as much as i'm doing it for the eco reasons, unless its profitable it wont make a dent in reducing waste as i cant expand it further
You never know how you might find a way for them to help do the work for you...