Welcome Mark!
Yes, cob can be used in place of standard concrete if you fortify it. The Romans used such a thing to make their aqueducts if you remember. They learned to add volcanic ash (which contains quicklime - see below) google this for informative videos.
On a cob or stawbale house you want the stem wall to be water proof/resistant, so it doesn't wick water up into your bales/cob.
Calcium hydroxide, traditionally called slaked lime, is an inorganic compound with the chemical formula Ca(OH)2. It is a colourless crystal or white powder and is obtained when calcium oxide (called lime or quicklime) is mixed, or "slaked" with water. It has many names including hydrated lime, builders lime, slack lime, cal, or pickling lime. It is of low toxicity and finds many applications.