White smoke in Diesel

[Caolan]

Hey there,

I have a Vetus 3.09 with 700hrs on it. I just recently started seeing the issue when I try and turn over my diesel, it makes a smell like plastic burning, and white smoke comes out. After a bit of running, it clears up. Since I have never had any issues with this engine before this, the research seems to indicate there is water or particulates in the fuel. I checked the two external fuel filters and drained some out of it and it looks sludgy.

I got some BioGuard https://www.westmarine.com/buy/valvt...9?recordNum=13
however there are no instructions on how to apply it. I have a 30gallon tank which is almost full. I would hate tho have to get new fuel.

Do I put the full 16oz into it?

What else should I check to clear this up?

Thanks!
-Caolan.