Am I missing something regarding ammo?

[Setherax]

Is there anything that i am missing or is the ability to craft ammo granted only after unlocking Coal Processing 2?

[IpsumEstPan]

yes, this was a bug which was fixed and a new version of pymods has been released on the mod portal. It fixes this bug by allowing acetylene to be crafted with redsci, although it is still pretty hard.