The ones that use a mineral based fluid tend to be the ones that use a heating element to heat up the fluid to the point where it gives off a vapour. I have tried a couple of these in the past and while they do make a smoke effect they tend to be quite thin in 'smoke' effect. Added to that I have a very strong aversion to heating up a quantity of 'fuel' to the point whereby it is vapourising. By the laws of physics this is usually not that much lower a temperature than the flash point so it makes me too nervous.
The water vapour type all use a nebuliser unit to vibrate the cold water into a vapour via a high frequency vibrating brass disc. They produce significant quantities of vapour so look very effective and are relatively easy to control so can be wired into the speed controller easily. Challenges with them tend to be that all available nebulisers seem to work off 24V so you either require a seperate battery or you have to step up from the existing available, which tends to usually be 12V.
The best ones I have had are now both no longer manufactured, which is a great shame. They both worked off a 12V supply and used a control circuit to step up for the nebuliser as well as control the output according to motor speed. They also both shut off after a number of seconds. Luckily the ones I have still work but when they fail it will be time to look for yet another supplier!
I have seen the results of a couple of experiments with black smoke. Invariably this means adding something to the cold water, which, by the nature of the fact it is cold, tends to fall on the model rather than rise. This inevitably deposits whatever dye has been used all over the model and makes an awful mess.