Interesting question.... I have not heard of this being done, and a quick Google search did not seem helpful. Fiberglass ceiling panels, yes. Insulation, no. Asking around, though.
Can you salvage and give away or sell it for reuse?
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There's a device we featured in Environmental Building News ages ago call the "Big Green Machine" that's designed to chop up waste batts and other stuff, and turn them into usable blown-in insulation: http://www.fiberiffic.co/BGmachMX.html .
It's most useful for leftover scraps from an installation--actual used insulation tends to be very dusty and would be trickier to reuse.
Thanks Tristan and Nadav! We are shooting for nearly 100% Construction Waste Recycling for our UCD - Brewery Wine and Food Pilot project and so everything needs to get recycled. I'll check out the "Big Green Machine"!
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