I looked into it a bit further, and apparently it was eventually going to be piped to the Purity Ethanol Plant where it would be fermented to make ethanol. The ethanol would then be used in the production of high explosives for the war effort.
> unquenchable thirst for the industrial alcohol needed to produce cordite—a smokeless gunpowder used in ammunition and artillery shells
"...a small portion of molasses would be distilled into grain alcohol for rum, but most of it, more than 80 percent, would be distilled into industrial alcohol that would be used as a major ingredient in the production of munitions, especially dynamite, smokeless powder, and other high explosives."
From https://archive.org/details/darktide00step/page/10/mode/2up?...
Of the two specific examples listed, dynamite is unambiguously a high explosive. From what I can tell, smokeless powder is usually classified as low by default, because that's how it behaves during storage, shipping, and handling. But during actual use, it occupies a grey area between the two classifications. I've found several sources saying that it can act as a high explosive under the right circumstances.