A most important feature of EPS with regard to environmental impact is that expanded polystyrene can be recycled in a number of ways.

Pure EPS scrap can, for example, be ground down and used for the production of new EPS, mixed with soil as a composting aid or used as a lightweight aggregate for concrete and insulating mortars.

The EPS scrap can also be melted in an extruder and then used as a solid polystyrene feedstock in other plastic processing industries. For example, EPS is currently being recycled for the production of picture frames, dado rails and skirting boards.

Waste EPS, on the other hand, can be applied in feedstock recycling where it is used as a chemical source in the production of other materials, such as crude carbon for the manufacturing of steel. It can also be broken down, mixed with refuse and either burnt as a fuel or disposed of by landfill where it promotes aeration and the breakdown of organic matter.

See also information in Isowood pertinent to this topic.