Where can I find blue studs/ wood and bluejean type insulation that Mike Holmes uses in his shows in, near, Somerset, Kentucky, thank you.

In Canada?
I believe that is the country where the show is produced and filmed.

If you want to find a source in your area, talk to local insulation companies or do a search online for both Bluejean insulation or Wood products made with castoff fabrics. No doubt the prices are going to be higher than common insulation materials, but it may be "greener", depending on the process to make or produce the usable end product.