The Plasma Launcher, or ic2.plasmaLauncher, is an experimental tool added by IndustrialCraft 2. As it is experimental, it is not craftable, and therefor only obtainable in Creative Mode or through Cheats.
The Plasma Launcher acts much like like the Mining Laser in Explosive Mode. Right-clicking it will shoot a super-hot red ray, and the ray will create an Explosion. The Explosion is relatively weak, and although it will destroy blocks like Dirt, Wood and Glass, it will NOT destroy blocks like Stone or Reinforced Stone. If a block nearby the Explosion radius is flammable, fire may be catch to that particular flammable block.
Often, instead of destroying Sand, the Plasma Launcher will super-heat it into Glass. Same with Clay and Hardened Clay.
Unlike the Mining Laser, the Plasma Launcher does NOT use any EU when a ray is emitted. When the item is finished, it likely will.