Only burial or placing them in water is suggest, and burning is only if no other option is available.
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With regards to getting rid of unwanted religious and Islamic literature, the great classical Hanafi jurist (faqih), Imam al-Haskafi (Allah have mercy on him) states:
“Books that are no longer benefited from, one should wipe away the names of Allah, His Angels, and His Messengers, and burn the rest. There is also nothing wrong with casting them into a flowing river as they are (i.e. without wiping away those names) or burying them, and this (burying them) is better.” (Radd al-Muhtar ala al-Durr al-Mukhtar, 5/271)
http://www.ummah.com/forum/showthread.php?221340-how-to-dispose-of-islamic-literature-in-a-halal-manner
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Allah knows best, please ask your local Masjid Administration or Imam for guidance on proper disposal of a damaged Quran.
JazakAllah.
