And that to us is a positive indicator for the years ahead, given that you have to have for the ecosystem to work, you have to have supply and demand. And you’re seeing that end use, the demand starting to grow. So that’s the two takeaways on that upper right hand chart on Slide 21. Now what your question was kind of chart content and what are we seeing on let’s take whether it’s a 10 ton per day. We’re seeing most of the liquefiers we see are either 15 ton per day or 30 ton per day. So I’m going to just use 15 ton per day as an example. And if you take the liquefier itself, those typically a 15 ton per day is going to cost, our content will be $35 million to $50 million on a 15 ton per day, obviously, with variability depending on aspects and customizations that the customer may want.
But the second half of your question, which I really think is astute is around used for transport or stationary power, which brings us more equipment around the production site. And that is typically what we’re seeing right now, storage tanks and trailers. What – our hydrogen team tells me is that the trailers are usually ordered about a year after the production equipment is ordered or the production technology. And so I think we’ll see – given the liquefier activity that we’ve seen in 2023, I would expect we’d see a pickup in trailers in late 2024 and 2025. So I like the staggeredness of the way that the full solution and the exceptional hydrogen portfolio that we have has been rolling out. I also really like the point we want to try to drill here is that it’s not U.S. only.
And you see that on that bottom right hand map. These are orders across multiple geographies. And we had a Howden compression order for about $16 million in the third quarter. And again, that was for an Asia location. So it’s really broad-based global. We serve all these facets of the value chain and in transport or stationary power, which really are the more pragmatic applications for hydrogen. We get the benefit of equipment technology on the production site as well as the ancillary pieces and parts.
Martin Malloy: Great. Thank you very much.
Jill Evanko: Thanks, Marty.
Operator: Next question will be from Eric Stine at Craig-Hallum. Please go ahead.
Eric Stine: Hi, Jill. Hi, Joe.
Jill Evanko: Hey. Good morning, Eric.
Eric Stine: Good morning. Hey, so I appreciate that you’re limited as to what you can say, but curious just on the new LNG award or new LNG opportunity that you expect to book later next year. I’ve been wondering if you can give any detail in terms of size and also just curious, is this one of the counterparties that you’ve been qualified with? Is this a new customer? Details would be helpful.
Jill Evanko: Yes, thanks Eric, for the question. And I appreciate you picking up on our excitement around this particular win. We’re qualified IPSMR qualification without boring you with the technical details is a big deal and it’s a big ordeal to get there. It’s multi years – in particular with international oil companies and we have, I think, close to a dozen of these validations and qualifications, technically. And we had, I think, last quarter we said nine international potential projects that fall in this category. Now we say, we have ten, plus the one that we know we were awarded the technology. That’s a meaningful step for us, I think, part of that, so the direct answer, yes, it’s with one that has qualified us.
The way that these typically work is the qualification happens through engineering and then the project team is the one who actually makes the decision, because they have to implement it. And so again, that’s a separate process and a longer process. So we’re super excited about this win. This is a high dollar. If you’re looking at historically the way we range out our big LNG projects, you say 100 to a few hundred million. This is certainly going to be at the high end of that range in terms of size and content. And I can’t tell you – international, there’s very limited locations geographically, internationally that have very sticky and established LNG activity. And so you can probably at least hone in on that from my answer there.
But I think even bigger when you’re talking about future potential growth, it unlocks having this type of win unlocks an entire market within big LNG that we never played in or played extremely limited in before. And so that’s my takeaway, is the strategy for profitable growth, continued consistency in big LNG bookings, and now we have this whole other facet of the world that is going to use IPSMR. I love it.
Eric Stine: Right. And I guess safe to assume that this large company has a backlog beyond just this project or at least a pipeline.
Jill Evanko: Yes, you are correct, Eric.
Eric Stine: Okay. And then last one for me. You mentioned the 65% coverage and backlog. I mean, obviously that’s a great number for Chart solo, but just context now that Howden is added as well. I mean, should we kind of view them the same? That’s a historically high level of backlog coverage.
Joe Brinkman: Yes, absolutely, Eric. Having 65% historically for Howden is excellent backlog coverage.
Eric Stine: Okay, thanks.
Operator: Thank you. Next question will be from Marc Bianchi at TD Cowen. Please go ahead.
Marc Bianchi: Thank you. I’m going to honor John’s request and ask just one question.
Jill Evanko: Thanks, Marc.
Marc Bianchi: So the fourth quarter guidance here and then for 2024, just trying to think about the progression as we get into 2024 because I think typically you would have some seasonal downturn in the first part of the year and then it ramps over the course of the year. Maybe that’s dampened a bit by Howden. But even if that happens, it would seem that you’d need to be exiting 2024 at margins maybe quite a bit above the 25% EBITDA margin that’s implied by the guidance. So maybe if you could just provide a little bit of a progression on how this should play out in 2024 to give us a sense of the exit rate?
Jill Evanko: Yes. Thanks for the question, Marc. And what I would say maybe I’ll step back to since we closed on the Howden deal, we’ve been at above the 21.5% adjusted EBITDA margin. We see the cost synergies are really starting to flow through the P&L here. In particular on SG&A as an example, we definitely see 2024 in terms of progression. We used to say Chart legacy used to say, okay, the first quarter and the fourth quarter were the lowest quarters of the year. We don’t see that nearly as much just given the shift to the project nature of the business. What we do want to point out in particular on and I’m going to come back around on the margin point here. But in particular, I want to make sure everybody noted the comments about the senior secured note, interest payments where we pay in January and July.
So there are two payments a year. So that’s important because that flows through operating cash. On the margin side, we have increasing benefit from mix in backlog around the projects that we’ve booked. The synergies I already touched on and then the delivering through on the higher volume that we have. So I would – the way I would model the year is kind of sequentially stepping up the EBITDA margin from where we sit today. And that’s – you can see that reflected in the implied fourth quarter 2023 guidance. And I don’t see anything that says there’s one quarter like we used to have that really we should call out as being lower than the rest of them.
Marc Bianchi: Okay. Thank you very much.
Jill Evanko: Thank you, Marc.
Operator: Next question will be from Pavel Molchanov at Raymond James. Please go ahead.
