Designer Jens Praet makes furniture from shredded paper. He compressed it with resin into a mold, and out comes a new piece of furniture. I'm not sure how eco-friendly that resin is, or how much paper it uses (I'm guessing a lot, which keeps it out of a landfill), but the material technique sure is neat, and strong! Via Core77.
http://blog.makezine.com/archive/2008/05/waste_paper_furniture.html