For Heating a Gas Grill: Soak 1 cup wood chips in water for 15 minutes. Drain well. Use a large piece of heavy-duty aluminum foil to wrap chips into foil packet and cut several vent holes in the top. Place wood chip packet directly on primary burner. Turn all burners to high, cover, and heat grill until hot (500°F; 260°C), about 15 minutes. Leave primary burner on high and turn off other burner(s). (see notes)
In a 10-inch cast iron skillet, add butter, half the bittersweet chocolate, water, and espresso powder, if using, and place on cooler side of the grill. Cook, swirling skillet and stirring occasionally, until butter is melted and beginning to bubble (some chocolate may not be fully melted). Using grill gloves, remove the skillet from the grill.