Sawdust is recycled in many different ways. It is compacted into logs and kerosene is added and a starter log is formed. Other companies use sawdust as filler material in the voids while making plywood and interior doors. In small quantities sawdust is added to the compost bin or directly to the soil to decompose. It can be used as a replacement for hay in a barn or in the bottom of a hampster cage. It can be used as a mulch in a flower bed or a garden. It works great for absorbing a small oil spill in the garage or on concrete. If you use it as a mulch, add lime to keep the pH from getting too high.