I'm betting that the foam you have there is PU foam (polyurethane). Although polyurethane can be manufactured to be marine safe i'm also betting that the foam you have there is NOT marine safe. The chances are it's just a bog standard packaging grade PU and as a result may well contain flame retardants. I'd throw it in the bin if I were you.
As mentioned, you can get filter floss in bulk from a lot of places. Be sure to get 100% polyester. I just buy smart price pillows from the local supermarket. They are stuffed with this floss and it can't be beat for mechanical filtration.