Strictly speaking, dynamite is nitroglycerin-soaked charcoal, pressed into sticks. A dynamite package is a collection of a few sticks, taped together, and wired in parallel to a simple timer. This timer can be set for as little as ten seconds of delay, or up to a few minutes. Dynamite is especially helpful for clearing cave-ins, and can blow most doors apart.
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Van Buren tech demo
While it doesn't appear in the Van Buren tech demo, it is still present in the game files and can be spawned with the console commandCreateEntity WeaponsDynamite.wea.