On Cinnabar Island in his Gym. You gotta Surf south from Pallet Town to get there.
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Fight the seventh gym on Cinnabar Island. Then fight the eighth gym at Virirdian City.
To get the Volcano Badge in Pokemon FireRed version, you must fly to Pallet Town and surf downwards until reaching Cinnibar Island, than you must go too the Pokemon Mansion and navigate your way through it until you find the secret key. Once you have the secret key, you can challenge Blaine the Cinnibar Island gym leader. I recommend using strong water or rock Pokemon because Blaine uses all fire type Pokemon.
In Pokemon firered you can't, but in Pokemon leafgreen you can get it then trade it to Pokemon firered.
To get Pokemon firered on PC download a vba and Pokemon firered ROM
Yes there are shiny Pokemon in firered