You should be able to use what you have. Really the only concern is that oxygen doesn't hit the parts when they are at heat, modern heat treat foils can essentially do the same thing but they are expensive and I think the Charcoal method gives me better results, though I have used both. As Jim says it also helps prevent decarb which can be an issue. They usually measure it in sieve size, but I suppose the stuff I use would be a bit courser than say 1fg. It shouldn't matter whether it is bone or wood, the big issue with the BBQ stuff is to ensure you don't have briquets that have binders in them.
If I remember correctly Brownells has, or did have, a coating that you put on the part that would also do the same things mentioned above. I have never used it, but it might be worth looking into.