You would probably need to enclose it in foil and even then for a 225-250 smoke, I think I would be a little worried that it would combust.
It could be OK for low temp jerky/fish type smokes where it is hard to keep large chunks smoking. But, I think I still tend to like the chips versus the dust for these smokes. Outside of using in my A-MAZE-N smokers, I don't really see a need for this stuff for me anyway.
I didn't know that they carried the dust.