Good morning, everyone, and thank you for joining H.C. Wainwright's 26th Annual Global Investment Conference. My name is Max Maher. I'm an analyst on the corporate access team here. H.C. Wainwright is a full-service investment bank dedicated to providing corporate finance, strategic advisory, and related services to both public and private companies across multiple sectors and regions. We have a total of 24 publishing senior analysts and over 600 companies covered across all sectors. Please visit hcwco.com for more information. And now, I'd like to welcome José Luis Crespo , who is General Manager, Applications of Plug Power.
Good morning, everyone, and thank you for attending the conference and coming to listen about Plug. First, I'm gonna make a small introduction of myself for those that don't know me. My name is José Luis Crespo. I've been with Plug over 10 years now. I originally joined Plug as the Head of Sales for the company. In that period, we grew the company from about $20 million to over $500 million. A couple of years ago, I moved to the position of General Manager for the Applications business unit. In Plug, we have two business units. One of them is Energy, which is basically dedicated to generation of hydrogen, the technology for generation, liquefaction, transportation, and everything really that is associated with the Energy business, that Sanjay is the General Manager of that division.
And then the other business unit is my business unit, which is the Applications business unit. This is all fuel cells that are dedicated to provide solutions for customers, end customers, like, for example, our material handling solutions or stationary solutions. So today, what you're gonna be hearing, what I'm gonna be talking about mainly, is about how Plug this year is concentrating on profitability and is concentrating on cash. This is a year of resetting for the company. We are working on operational excellence, and as we have the best platforms that you can think of in the hydrogen economy today, we believe that we are prepared and ready to take advantage of when the market, and as the market accelerates in the hydrogen business, to be able to be the leaders in that growth.
We have the technology, as I said, we have the plans, we have the capability for growth, and we will take advantage of that. You will also hear that we're seeing already a growth in the electrolyzer business. We expect that electrolyzers will be the major source of growth for Plug in the next five years or so. And as renewables become more and more available, as we can see now, we have negative pricing on renewables in some cases. But as renewables become more available and price of electricity starts going down, the next wave of growth is gonna come from our high-power stationary solutions.
When we are able to produce hydrogen at very low cost, we will be able to generate electricity from that hydrogen also at very low cost and start, you know, working on different solutions, like peaker plants, in the market. So with that, I'll go into some of the details here. So, in the Q2 , in the H1 of the year, really, we have already seen the electrolyzers product deployments grow. We deployed about 70 MW of electrolyzer systems in the Q2 , which is a major growth compared to, you know, what we had in last year. We have all of them commissioned at customer sites, with the majority of them title transfers and also cash received.
Now, given final commissioning and testing requirements, and given that this is a new technology, we were not able to recognize that revenue in Q2, but we are gonna be recognizing that revenue in the H2 of the year. Most importantly, we have seven point five GW of BEDP, Basic Engineering Design Packages, for hydrogen generation, for electrolyzer opportunities. This is a major advantage for Plug because this is allowing us to participate in the process of the design of the future plants, and also, at the same time, we get funded by customers by doing that. And also, customers see the value of Plug helping them with those type of activities because they know we have already Georgia and Tennessee as plants generating hydrogen, and they know that we can do these type of things.
Even if a quarter of that BEDP were to convert into sales for Plug, that would represent over $1 billion in revenue for the company in the next couple of years. So that's the part of where we see, you know, growth on the electrolyzer side. We have also started hydrogen production in the last couple of quarters in Georgia, and we already had Tennessee. But that has allow us to create a step change on the margins for fuel. We have improved margins by 57% so far, and we expect that the margins will continue to improve in the following quarters. We have also, basically, and I'll talk a little bit more about that put price increases in the market. I'm sure everybody is aware of that.
We talked about that in the past, which between, you know, our own production, which reduces the cost, and the price increases that we have put in the market, we have been able to, again, improve margins to 57% and expecting those margins to even go higher. We are the first company to have been able to recognize the 45V production for our plant in Georgia, which again, you know, helps with margins. We continue to implement initiatives to reduce cash burn. We have done a combination of SG&A. We are doing a consolidation of rooftops, and also that is being reflected in a reduction of cash burn by $26 million year -over -year. In the material handling market, as I mentioned before, we are recalibrating the market.
It's been a market with incredible growth in the past years, but what we have done is we have reset pricing in accordance to the value that we bring to customers. It's not just a reset of pricing, an increase of pricing, but customers now have been using our largest customers have been using the technology for a long time, and they understand that the technology brings a lot of value to them. And we have been able, with our partners, customers, to get to agreements where, you know, they see the value, and they accept the increase on pricing based on the value, not just a pure increase on pricing. Same thing, obviously, with the hydrogen. We've been able to increase price of hydrogen to the majority of our customers.
Basically, our customer base, we have, you know, around ten customers that consume over 90% of the hydrogen that we need and that we sell to customers, and we've been able to reset pricing with all those customers. Again, that has been reflected on the margins for hydrogen, for fuel in the past quarters. We have received the commitment for the DOE loan guarantee, and we are proceeding with basically the documentation to get that done. We're expecting that to happen before the end of the year. And as an important item as well, the last one that we have in there is that we have remediated the material weakness that we had on the table. Okay?
Priorities, as I said before, at the beginning, cash management and operational efficiencies, operational excellence, to be able to achieve the goals that we have and to prepare the company for the growth that is coming ahead. This is a year where, as I said, we're resetting. We're making sure that we have the operations that we need and that we will need for the growth that we're seeing on ELX and other markets, and that's what we are executing at the moment right now. Priorities for the company. Obviously, as I said, we have as a main priority, the market that we believe is gonna bring the majority of the growth for Plug, which is electrolyzers and hydrogen. We are concentrating on hydrogen plants and electrolyzers.
As you know, we have Tennessee already up and running. We have Georgia already up and running. That produces about 25 tons a day out of the 50 tons that we need for our customers today, 50 tons and growing. And then now we're working on Louisiana as well. That is gonna bring us another 15 tons per day. In electrolyzers, we keep on growing. As I said, we have installed more than 70 MW in the last couple of quarters, but we also have this pipeline of 7.5 GW of BEDP that we expect a lot of it to convert into orders and bring the growth that we are projecting to the company. Along with that, liquefaction and cryogenics.
The moment you start producing hydrogen, you either are gonna transport it in the gas format or you're gonna liquefy it, so that business is gonna come along with it. And cryogenics for storage and transportation. Both businesses are gonna be growing along with the electrolyzer business for the Energy BU. And on the application side, as I mentioned, material handling, we are recalibrating that business. We are expecting that business to become a profitable business in the next quarters. We have been able to increase pricing, we are reducing cost. So all of that is gonna put us in a good position to make that business a cash-generating business. And the stationary power, as I mentioned, is an investment on future growth.
Once ELX has started growing in the next five years, and we see large productions of hydrogen all over the world, and we see renewables to start reducing cost of electricity, we're gonna be able to produce low-cost hydrogen when the cost of renewables is really, really low. And then with that hydrogen, we can start complementing the grid for the nature of renewables, but basically is, you know, a an intermittent source of electricity. So we're gonna see this technology play a big role on applications like bigger plants. On the next slide, I'm just gonna walk through a little bit on the financial update. We reduced our cash for operations by 29%.
Again, as I was saying before, we are concentrating. It's all about profitability. It's all about cash for Plug right now. It's all about preparing the company to be healthy financially and to be healthy in terms of being ready for growth that is coming. And in terms of use of cash, we've been able to, you know, make some advances here. The revenue in Q2 was $143 million. As I said as well, the majority of the 70 MW that we installed in Q2, we were not able to recognize the revenue. That will be coming up in the next couple of quarters, and that will basically help the revenue in the H2 of the year. We are also, given our new production of hydrogen.
For 45V credits and increases in prices, we've been able to impact fuel margins. I mentioned that already as well. We are also increasing the volumes for the H2 of the year. The majority of our revenue historically has come in the H2 of the year. Two-thirds of the revenue of 2024 are expected to be in the H2 of the year, and with that, we will be able to utilize our infrastructure and everything that we have ready to go in the H2 , which will help with profitability and with margins. Again, we concentrate and we keep on working on impacting margins across all segments, targeting to get to break-even rate in the Q4 of 2024.
On the next slide, we're gonna talk a little bit more about, you know, where we are, you know, with liquidity and our balance sheet. We have, and we mentioned that before, almost $1 billion in restricted cash that gets released every quarter at a rate of about $50 million. We have closed on one $200 million public offering in July of 2024, which helps with the liquidity for the company. And we continue to reduce costs and optimizing workforce, headcount reductions, and everything. Again, all is the theme that I was talking about before, which is we're concentrated on profitability and cash preservation this year. We have a very unlevered balance sheet for $4.8 billion, with basically very little debt. And so we're looking at ways to use that.
But also, you know, as everybody knows, we are right now finalizing and working on the $1.7 billion DOE loan. We're hoping that to be closed before the end of the year as well. And then other sources of cash that we have, and this would be a new process that we're going through, and it's. You'll see some results of that in the next few weeks, is transferability of tax credit, ITC benefits that we can transfer to other companies. We're working hard on that. We have spent a large amount of money in many of these projects that actually qualify for ITC, and that we can sell to companies that are interested in buying those or transfer to companies that are interested in buying those credits.
Finally, kind of as a summary here, again, we are concentrating on profitability. We have, I think a much vertical integration in the hydrogen economy. We continue to take steps on price increases, growth of sales, trying to reduce our inventory, which is another source of liquidity that we're working on. And also working on supply chain efficiencies. Services is another part that we're working on to improve, expecting to get to break even in services for material handling in 2025.
So all these things, every single effort that you see today, with Plug is to continue sustainable work growth, growth that can contribute to the financial position of the company, and growth that actually will position us as the leaders for hydrogen in the future. We see that the hydrogen economy is gonna re-accelerate, and we're gonna be positioned as the leader company to be able to take advantage of that acceleration. And with that, I conclude my presentation. And I think now it is time for Q&A.
Thank you so much from the entire team.