well there is also cellulose..It's been used forever. Behind the plaster and lath walls of very old houses there is often either old
newspaper or sawdust. Now it's a bit more sophisticated and less prone to rodents and fire hazard. It has stuff added to it to accomplish that so it won't be entirely chemical free but it isn't
petroleum based by any means.
The stuff that follows all comes from Green Home Builders site :
A: There are a lot of options for floor and ceiling insulation, and many are nontoxic and fairly environmentally friendly. Here are some of the most environmentally and people friendly options, listed in approximate order of desirability:
1. Recycled cellulose insulation made from newsprint and treated with boric acid as a flame retardant and insect repellent
2. Wool insulation
3. Cotton insulation, made from recycled blue jeans (I don't know if they add any toxic binders).
* * *
A Canadian manufacturer that is making a foundation insulation made from
rock wool. It is called Roxul, if memory serves me correctly. Rock wool, of
course, is made from rock. I hear that it is quite
water resistant and provides good insulation. It requires no CFCs, formaldehyde or HCFCs in its production"
end of quote.
There is also this stuff made from..basically..mushrooms.. ..I looked at it a couple of years ago and it wasn't yet on the market, maybe it is now
http://www.popsci.com/environment/article/2009-05/green-styrofoam (There's probably a better link, I just took the first one that came along)
People are mixing straw or sawdust with clay and a little bit of borax (same stuff as Mule Team laundry product) and using that. The clay sticks everything together and both the clay and the borax help prevent unwanted visits by pests and/or fire. Might be a bit space gobbling though, for a tiny house.