I am new to beetle keeping myself but...
I have heard people use Traeger-brand wood pellets to make sawdust? You pour hot water on it and they expand. You're supposed to use them for grilling for smoky wood flavor, but this website explains how to make them into beetle food:
here. I have not yet personally tried it myself... but I assume it's safe or this person would not be using them for their insects!
They are food safe so I assume they are fine for insects. Amazon advertises they have no binding agents or additives so I think they are literally
just compressed wood sawdust into little pellets.
If you don't want to try that, best I can say is to rot your wood until it's soft enough to be broken by hand and then mash it with a flat hammer to make particles. That's what I did with mine and it got pretty fine and very dusty, but my oak wood was also allowed to rot for several weeks before I broke it up.