The human handheld grenade launcher will be able to lob explosive grenades over medium distances (depending on your trajectory). Apparently different types of grenades will be available. It has been confirmed that at least smoke grenades are planned in addition to standard fragmentation.
The concept, modeling, and skinning were all done by (you guessed it), Chemeleon.
Click here for a concept sketch of the grenade launcher, by Zero-Optix.