top innovators

Hertha Metals named world's  No. 1 most innovative manufacturing co. of 2026

U.S. Rep. Morgan Luttrell, a Magnolia Republican, and Hertha Metals founder and CEO Laureen Meroueh toured Hertha’s Conroe plant in August. Photo courtesy Hertha Metals/Business Wire.

Led by Conroe-based Hertha Metals, five organizations in the Houston area earned shoutouts on Fast Company’s list of the World’s Most Innovative Companies of 2026.

Hertha Metals ranked No. 1 in the manufacturing category.

Last year, Hertha unveiled a single-step process for steelmaking that it says is cheaper, more energy-efficient and just as scalable as traditional steel manufacturing. It started testing the process in 2024 at a one-metric-ton-per-day pilot plant.

At the same time, Hertha announced more than $17 million in venture capital funding from investors such as Breakthrough Energy, Clean Energy Ventures, Khosla Ventures, and Pear VC.

“We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing, and national resilience,” Laureen Meroueh, founder and CEO of Hertha, said at the time.

Meroueh was also recently named to Inc. Magazine's 2026 Female Founders 500 list.

Hertha, founded in 2022, says traditional steelmaking relies on an outdated, coal-based multistep process that is costly, and contributes up to 9 percent of industrial energy use and 10 percent of global carbon emissions.

By contrast, Hertha’s method converts low-grade iron ore into molten steel or high-purity iron in one step. The company says its process is 30 percent more energy-efficient than traditional steelmaking and costs less than producing steel in China.

Last year, Hertha said it planned to break ground in 2026 on a plant capable of producing more than 9,000 metric tons of steel per year. In its next phase, the company plans to operate at 500,000 metric tons of steel production per year.

Here are Fast Company’s rankings for the four other Houston-area organizations:

  • Houston-based Vaulted Deep, No. 3 in catchall “other” category.
  • XGS Energy, No. 7 in the energy category. XGS’ proprietary solid-state geothermal system uses thermally conductive materials to deliver affordable energy anywhere hot rock is located. While Fast Company lists Houston as XGS’ headquarters, and the company has a major presence in the city, XGS is based in Palo Alto, California.
  • Houston-based residential real estate brokerage Epique Realty, No. 10 in the business services category. Epique, which bills itself as the industry’s first AI brokerage, provides a free AI toolkit for real estate agents to enhance marketing, streamline content creation, and improve engagement with clients and prospects.
  • Texas A&M University’s Nanostructured Materials Lab in College Station. The lab studies nano-structured materials to make materials lighter for the aerospace industry, improve energy storage, and enable the creation of “smart” textiles.

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A View From HETI

Corpus Christi, Texas is already facing prolonged drought and water concerns. Photo by Brandon Bell/Getty Images

A draft of Texas’ 2027 State Water Plan is drawing concerns from some water protection advocates who say it fails to account for one growing industry: data centers.

The plan, created by the Texas Water Development Board, will guide tens of billions of dollars in water development projects over the coming decades.

On Memorial Day, people packed Lake Travis to enjoy the water and sunshine while the lake remains near full capacity. But some advocates warn drought conditions could quickly return.

“Once we get into August, September, we'll be probably right back in the same drought situation,” said Mike Clifford with the Greater Edwards Aquifer Alliance.

The Texas Water Development Board released the draft plan in April. It recommends thousands of water projects carrying a projected cost of $174 billion over 50 years.

“We're not as shocked about the dollar amounts as some people are,” Clifford said. "To secure our water future, that's not an insane amount to ask for."

However, Clifford said his organization was surprised the draft does not specifically account for the growing impact of data centers, which can consume large amounts of water.

“If you leave the data centers out, it's not really a plan in our opinion. It's going to have to be changed and it's going to fall short,” Clifford said.

According to Data Center Map, Texas is currently home to 461 data centers.

Clifford argues the state should use projected future growth, not just historical data, when planning for long-term water needs.

“They're looking at the previous 10 years or 20 years or whatever, and we didn't have a lot of data centers in Texas,” he said.

Researchers at the the University of Texas at Austin estimate data centers could account for as much as 9 percent of Texas’ total water use by 2040, or potentially surpass the oil and gas industry that same year.

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Read the full story from CultureMap news partner KVUE.com.

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