heavy metals

Houston-area sustainable steel company emerges from stealth with $17M in VC funding

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.

Conroe-based Hertha Metals, a producer of substantial steel, has hauled in more than $17 million in venture capital from Khosla Ventures, Breakthrough Energy Fellows, Pear VC, Clean Energy Ventures and other investors.

The money has been put toward the construction and the launch of its 1-metric-ton-per-day pilot plant in Conroe, where its breakthrough in steelmaking has been undergoing tests. The company uses a single-step process that it claims is cheaper, more energy-efficient and equally as scalable as conventional steelmaking methods. The plant is fueled by natural gas or hydrogen.

The company, founded in 2022, plans to break ground early next year on a new plant. The facility will be able to produce more than 9,000 metric tons of steel per year.

Hertha said in a news release that its process, which converts low-grade iron ore into molten steel or high-purity iron, “doesn’t just materially lower cost and energy use — it fundamentally expands our capacity to produce iron and steel at scale, by unlocking a wider range of iron ore feedstocks.”

Laureen Meroueh, founder and CEO of Hertha, says the company’s process will fill a gap in U.S. steel production.

“We’re not just reinventing steelmaking; we’re redefining what’s possible in materials, manufacturing, and national resilience,” Meroueh says.

Hertha says it’s in talks with magnet producers — which make permanent magnets and magnetic assemblies from raw materials such as iron — to become a U.S. supplier of high-purity iron. In its next stage of growth, Hertha will aim to operate at a capacity of 500,000 metric tons of steel production per year.

The company won the Department of Energy's Summer Energy Program for Innovation Clusters (EPIC) Startup Pitch Competition last summer. Read more here.

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A View From HETI

Meg Whitman, former CEO of eBay, Hewlett-Packard and HPE, has joined the Fervo board as lead independent director. Photo courtesy of U.S. State Department

As it prepares for a highly anticipated IPO, Houston-based geothermal power provider Fervo Energy has added four heavyweights to its board of directors.

The most notable new board member is Meg Whitman, former CEO of eBay, Hewlett-Packard, and Spring-based HPE, and former U.S. ambassador to Kenya. She joined the Fervo board as lead independent director.

One of the other high-profile new board members at Fervo is Jessica Uhl. She was chief financial officer of Shell from 2017 to 2022 and spent a little over a year as president of GE Vernova, a GE energy spinoff. She is a former board member of GE, Goldman Sachs and Shell. Today, Uhl advises investment firms on energy matters.

Another energy industry veteran, Trey Lowe, also joined the Fervo board. Lowe is senior vice president and chief technology officer at oil and gas producer Devon Energy, a Fervo investor that’s moving its headquarters from Oklahoma City to Houston. Before Devon, Lowe worked in the U.S. and Norway for Houston-based energy technology company SLB.

The fourth new director at Fervo is Robert Keehan, who spent 37 years at professional services firm PwC. He most recently was PwC’s chief global auditor and earlier was a partner in the firm’s energy practice.

Keehan and Uhl will serve as independent directors, which are non-executive governance and oversight roles, while Lowe is a non-independent director, which is a more hands-on role.

With the four new directors, Fervo has seven board members.

The arrival of the four new board members comes at a monumental time for Fervo, a provider of utility-scale geothermal energy:

“Energy markets are demanding dependable, carbon-free power at an unprecedented scale, and Fervo is uniquely positioned to supply it,” Tim Latimer, co-founder and CEO of Fervo, said in December.

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