if it is vapourising and making "smoke" then it will be at or above its flashpoint. If any portion of the work sparks or becomes incandescent there is a high risk of a flashover.
You can get vegetable based water soluble coolant - Ometa make it in various flavours.
As an aside, i used to run my old diesel Escort on waste vegetable oil, it smelled of kebabs and nasty meats but it worked surprisingly well. the cost of fresh veg oil and indeed used veg oil in the UK has murdered any chance of saving money by making biodiesel but WVO can still be had for running as a straight fuel.