You should check this out:

http://www.youtube.com/watch?v=nV-iCIqRn28

See the shaving infill part from the 3rd minute.

www.baufritz.com

It is a German house manufacturing company that makes passive houses for wall infill using wood shavings.

Here are some good stuff about shavings:

timber.ce.wsu.edu/Resources/papers/4-2-1.pdf

An alternate method and I think the worlds best insulation is sheep wool insulation:

http://www.sheepwoolinsulation.ie/