Gunpowder is a flammable powder that solves many problems. Keep it dry and use it only against enemies. Gunpowder is an important component for crafting Dynamites and Gunparts.
To craft Gunpowder you have to build the Laboratory workbench, find some Sulfur and Charcoal.
If you're running out of Glycerol, grab some Gunpowder and visit the Trader location. There, you will be able to exchange 10 Gunpowder for 1 Glycerol.