I would imagine they dropped the idea, because it's much more effective to use the ships themselves to create smoke screens - spray oil onto the exhausts and away you go.
A look at the capsized German Battleship Tirpitz, after Operation Catechism finally sunk her in Norway on 12 November, 1944. "She lived an invalids life, and died a cripples death..."

A look at the capsized German Battleship Tirpitz, after Operation Catechism finally sunk her in Norway on 12 November, 1944. "She lived an invalids life, and died a cripples death..."