According to the MSDS on the Homasote site it contains "celulose" products (that's what wood and paper are) and 1%-2% paraffin wax, plus less than 0.1% copper based pestiside. It claims "The product contains no known hazardous or carcinogenic components."
It says the fumes created when burning include carbon monoxide, carbon dioxide, and paraffin wax fumes. CO and CO2 are created with many materials that are lasered or burned.
Of course, like any material that you laser, you would want your fume extractor to remove all fumes from the building.
My guess is that it's less toxic to laser than MDF and maybe even plywood.
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