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.
Houston-based Collide plans to use its seed funding to accelerate the development of its GenAI platform for the energy industry. Photo via Getty Images.
Houston-based Collide, a provider of generative artificial intelligence for the energy sector, has raised $5 million in seed funding led by Houston’s Mercury Fund.
Other investors in the seed round include Bryan Sheffield, founder of Austin-based Parsley Energy, which was acquired by Dallas-based Pioneer Natural Resources in 2021; Billy Quinn, founder and managing partner of Dallas-based private equity firm Pearl Energy Investments; and David Albin, co-founder and former managing partner of Dallas-based private equity firm NGP Capital Partners.
“(Collide) co-founders Collin McLelland and Chuck Yates bring a unique understanding of the oil and gas industry,” Blair Garrou, managing partner at Mercury, said in a news release. “Their backgrounds, combined with Collide’s proprietary knowledge base, create a significant and strategic moat for the platform.”
Collide, founded in 2022, says the funding will enable the company to accelerate the development of its GenAI platform. GenAI creates digital content such as images, videos, text, and music.
Originally launched by Houston media organization Digital Wildcatters as “a professional network and digital community for technical discussions and knowledge sharing,” the company says it will now shift its focus to rolling out its enterprise-level, AI-enabled solution.
Collide explains that its platform gathers and synthesizes data from trusted sources to deliver industry insights for oil and gas professionals. Unlike platforms such as OpenAI, Perplexity, and Microsoft Copilot, Collide’s platform “uniquely accesses a comprehensive, industry-specific knowledge base, including technical papers, internal processes, and a curated Q&A database tailored to energy professionals,” the company said.
Collide says its approximately 6,000 platform users span 122 countries.
Houston-based Solidec took home the top TEX-E price and $25,000 at last year's Energy Venture Day and Pitch Competition. Photo courtesy of HETI
The Rice Alliance for Technology and Entrepreneurship, the Houston Energy Transition Initiative and the Texas Entrepreneurship Exchange for Energy announced the 30-plus energy ventures and five student teams that will pitch at the 2025 Energy Venture Day and Pitch Competition during CERAWeek next month.
The ventures are focused on driving efficiency and advancements toward the energy transition and will each present a 3.5-minute pitch before a network of investors and industry partners during CERAWeek's Agora program.
The pitch competition is divided up into the TEX-E university track, in which Texas student-led energy startups compete for $50,000 in cash prizes, and the industry ventures track.
Teams competing in the TEX-E Prize track include:
ECHO
HEXAspec
HydroStor Analytics
Nanoborne
Pattern Materials
The industry track is subdivided into three additional tracks, spanning materials to clean energy and will feature 36 companies. The top three companies from each industry track will be named. The winner of the CERAWeek competition will also have the chance to advance and compete for the $1 million investment prize at the Startup World Cup in October 2025.
Teams come from around the world, including several notable Houston-based ventures, such as Corrolytics, Rheom Materials, AtmoSpark Technologies, and others. Click here to see the full list of companies and investor groups that will participate.
The pitch competition will be held Wednesday, March 12, at CERAWeek from 1-4:30 pm. An Agora pass is required to attend.
Those without passes can catch more than 50 companies at a free pitch preview at the Ion. Pitches will be followed by private meetings with venture capitalists, corporate innovation groups, industry leaders, and tech scouts. The preview will be held Tuesday, March 11, from 9:30 am to 2:30 pm at the Ion. It's free to attend, but registration is required. Click here to register.
Last year, Houston-based Solidec took home the top TEX-E price and $25,000 cash awards. The startup extracts molecules from water and air, then transforms them into pure chemicals and fuels that are free of carbon emissions. Its co-founder and Rice University professor Haotian Wang was recently awarded the 2025 Norman Hackerman Award in Chemical Research.
NearStar Fusion team Andrew Case, Chris Faranetta, Douglas Witherspoon, Amit Singh and Marco Luna. Photo courtesy NearStar Fusion.
Houston-based climate tech venture firm Ecosphere Ventures has partnered with Virginia Venture Partners and Virginia Innovation Partnership Corporation’s venture capital program to invest in Virginia-based NearStar Fusion Inc., which develops fusion energy power plants.
NearStar aims to use its proprietary plasma railgun technology to safely and affordably power baseload electricity on and off the power grid through a Magnetized Target Impact Fusion (MTIF) approach, according to a news release from the company.
NearStar’s power plants are designed to retrofit traditional fossil fuel power plants and are expected to serve heavy industry, data centers and military installations.
“Our design is well-suited to retrofit coal-burning power plants and reuse existing infrastructure such as balance of plant and grid connectivity, but I’m also excited about leveraging the existing workforce because you won’t need PhDs in plasma physics to work in our power plant,” Amit Singh, CEO of NearStar Fusion, said in a news release.
NearStar will also conduct experiments at the Texas A&M Hypervelocity Impact Laboratory (HVIL) in Bryan, Texas, on prototype fuel targets and evolving fuel capsule design. The company plans to publish the results of the experiments along with a concept paper this year. NearStar will work with The University of Alabama in Huntsville (UAH) to develop computer performance models for target implosions.
NearStar’s MTIF approach will utilize deuterium, which is a common isotope of hydrogen found in water. The process does not use tritium, which NearStar believes will save customers money.
“While avoiding tritium in our power plant design reduces scientific gain of the fusion process, we believe the vastly reduced system complexity and cost savings of eliminating complicated supply chains, regulatory oversight, and breeding of tritium allows NearStar to operate power plants more profitably and serve more customers worldwide, ”Douglas Witherspoon, NearStar founder and chief scientist, said in a news release.
Houston’s Ecosphere Ventures invests in climate tech and sustainability innovations from pre-seed to late-seed stages in the U.S. Ecosphere also supports first-time entrepreneurs and technical founders.
PitchBook attributes $634 million in fourth-quarter VC to Fervo. Photo via Getty Images
Roughly half of the 2024 sum, $914.3 million, came in the fourth quarter. By comparison, Houston-area startups collected $291.3 million in VC during the fourth quarter of 2023.
Among the Houston-area startups contributing to the impressive VC total in the fourth quarter of 2024 was geothermal energy startup Fervo Energy. PitchBook attributes $634 million in fourth-quarter VC to Fervo, with fulfillment services company Cart.com at $50 million, and chemical manufacturing platform Mstack and superconducting wire manufacturer MetOx International at $40 million each.
Across the country, VC deals total $209 billion in 2024, compared with $162.2 billion in 2023. Nearly half (46 percent) of all VC funding in North America last year went to AI startups, PitchBook says. PitchBook’s lead VC analyst for the U.S., Kyle Stanford, says that AI “continues to be the story of the market.”
PitchBook forecasts a “moderately positive” 2025 for venture capital in the U.S.
“That does not mean that challenges are gone. Flat and down rounds will likely continue at higher paces than the market is accustomed to. More companies will likely shut down or fall out of the venture funding cycle,” says PitchBook. “However, both of those expectations are holdovers from 2021.”
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This story originally appeared on our sister site, InnovationMap.com.
Here were this year's most-read funding news stories on EnergyCapital. Photo via Getty Images
Editor's note: As the year comes to a close, EnergyCapital is looking back at the year's top stories in Houston energy transition. From firms with fresh funding to deploy to energy tech companies to startups raising venture capital investment, Houston has some wins to celebrate this year when you follow the money. Here were the top five most-read articles — according to EnergyCapital reporting — covering investment deals of 2024. Be sure to click through to read the full story.
Pelican Energy Partners has raised more than it intended with its new nuclear-focused fund. Photo via Getty Images
Houston-based private equity firm Pelican Energy Partners has raised a $450 million fund to invest in nuclear energy services and equipment companies.
Pelican had aimed to raise $300 million for Pelican Energy Partners Base Zero LP and had imposed an initial “hard cap” of $400 million. Investors include endowments, foundations, family offices, and pension plans.
As of the fund’s closing date, the fund had wrapped up six investments, with several more deals expected to close by the end of this year. Continue reading.
The advanced submersible robotics company will put the funds toward international expansion. Photo courtesy of Square Robot
Houston- and Boston-based Square Robot Inc. closed a series B round of funding last month.
The advanced submersible robotics company raised $13 million, according to Tracxn.com, and says it will put the funds toward international expansion.
"This Series B round, our largest to date, enables us to accelerate our growth plans and meet the surging global demand for our services,” David Lamont, CEO, said in a statement. Continue reading.
HF Capital, the Knoxville, Tennessee-based investment arm of the Haslam family, made the multimillion-dollar commitment to set up Ara Energy Decarbonization. Photo via arapartners.com
Houston-based Ara Partners, a private equity firm that focuses on industrial decarbonization investments, is receiving up to $725 million from a Tennessee-based family office to launch an energy decarbonization unit.
HF Capital, the Knoxville, Tennessee-based investment arm of the Haslam family, made the multimillion-dollar commitment to set up Ara Energy Decarbonization. The new business will work toward reducing carbon emissions at ethanol plants, natural gas power plants, and other traditional energy assets.
The Haslam family founded Pilot Co., North America’s largest transportation fuel business and chain of travel centers. Shameek Konar, former CEO of Pilot, has been tapped to lead Ara Energy Decarbonization. Continue reading.
As emerging technology continues to grow electricity load demand, Cloverleaf has identified an opportunity to develop large-scale digital infrastructure sites powered by low-carbon electricity. Photo via Getty Images
Houston energy executives have started a new company dedicated to developing clean-powered infrastructure for the large electric loads.
Cloverleaf Infrastructure, dually headquartered in Houston and Seattle, Washington, announced its launch and $300 million raised from NGP and Sandbrook Capital, two private equity firms. The company's management team also invested in the company.
As emerging technology continues to grow electricity load demand, Cloverleaf has identified an opportunity to develop large-scale digital infrastructure sites powered by low-carbon electricity.
"The rapid growth in demand for electricity to power cloud computing and artificial intelligence poses a major climate risk if fueled by high-emission fossil fuels," David Berry, Cloverleaf's CEO, says in a news release. "However, it's also a major opportunity to catalyze the modernization of the US grid and the transition to a smarter and more sustainable electricity system through a novel approach to development." Continue reading.
A mix of public and private investors have funded Greentown Labs. Photo via GreentownLabs.com
Greentown Labs, a climatetech incubator with locations in the Houston and Boston areas, has announced it has received funding from a mix of investors.
The $4 million in funding came from both of the Houston and Massachusetts locations. Houston investors included Bobby Tudor, CEO of Artemis Energy Partners and chairman of the Houston Energy Transition Initiative; David Baldwin, co-founder of OpenMinds and TEX-E and partner at SCF Partners; and Rice University. Other investors included MassDevelopment and the City of Somerville.
“The challenges of the energy transition are immense, and the role played by technology incubators like Greentown Labs is essential,” Tudor says in a news release. “We believe this role, which is a partnership between academia, industry, philanthropists, entrepreneurs, and governments, is the best way to get to effective, scalable solutions in a time frame that the urgency of the challenge requires. We need all hands on deck, and this partnership between Massachusetts and Texas can be a role model for others.” Continue reading.
Houston’s Reliant and San Francisco tech company GoodLeap are teaming up to bolster residential battery participation and accelerate the growth of NRG’s virtual power plant (VPP) network in Texas.
Through the new partnership, eligible Reliant customers can either lease a battery or enter into a power purchase agreement with GoodLeap through its GoodGrid program, which incentivises users by offering monthly performance-based rewards for contributing stored power to the grid. Through the Reliant GoodLeap VPP Battery Program, customers will start earning $40 per month in rewards from GoodLeap.
“These incentives highlight our commitment to making homeowner battery adoption more accessible, effectively offsetting the cost of the battery and making the upgrade a no-cost addition to their homes,” Dan Lotano, COO at GoodLeap, said in a news release.“We’re proud to work with NRG to unlock the next frontier in distributed energy in Texas. This marks an important step in GoodLeap reaching our nationwide goal of 1.5 GW of managed distributed energy over the next five years.”
Other features of the program include power outage plans, with battery reserves set aside for outage events. The plan also intelligently manages the battery without homeowner interaction.
The partnership comes as Reliant’s parent company, NRG, continues to scale its VPP program. Last year, NRG partnered with California-based Renew Home to distribute hundreds of thousands of VPP-enabled smart thermostats by 2035 in an effort to help households manage and lower their energy costs.
“We started building our VPP with smart thermostats across Texas, and now this partnership with GoodLeap brings home battery storage into our platform,” Mark Parsons, senior vice president and head of Texas energy at NRG, said in a the release. “Each time we add new devices, we’re enabling Texans to unlock new value from their homes, earn rewards and help build a more resilient grid for everyone. This is about giving customers the opportunity to actively participate in the energy transition and receive tangible benefits for themselves and their communities.
Corrosion is not something most people think about, but for Houston's industrial backbone pipelines, refineries, chemical plants, and water infrastructure, it is a silent and costly threat. Replacing damaged steel and overusing chemicals adds hundreds of millions of tons of carbon emissions every year. Despite the scale of the problem, corrosion detection has barely changed in decades.
In a recent episode of the Energy Tech Startups Podcast, Anwar Sadek, founder and CEO of Corrolytics, explained why the traditional approach is not working and how his team is delivering real-time visibility into one of the most overlooked challenges in the energy transition.
From Lab Insight to Industrial Breakthrough
Anwar began as a researcher studying how metals degrade and how microbes accelerate corrosion. He quickly noticed a major gap. Companies could detect the presence of microorganisms, but they could not tell whether those microbes were actually causing corrosion or how quickly the damage was happening. Most tests required shipping samples to a lab and waiting months for results, long after conditions inside the asset had changed.
That gap inspired Corrolytics' breakthrough. The company developed a portable, real-time electrochemical test that measures microbial corrosion activity directly from fluid samples. No invasive probes. No complex lab work. Just the immediate data operators can act on.
“It is like switching from film to digital photography,” Anwar says. “What used to take months now takes a couple of hours.”
Why Corrosion Matters in Houston's Energy Transition
Houston's energy transition is a blend of innovation and practicality. While the world builds new low-carbon systems, the region still depends on existing industrial infrastructure. Keeping those assets safe, efficient, and emission-conscious is essential.
This is where Corrolytics fits in. Every leak prevented, every pipeline protected, and every unnecessary gallon of biocide avoided reduces emissions and improves operational safety. The company is already seeing interest across oil and gas, petrochemicals, water and wastewater treatment, HVAC, industrial cooling, and biofuels. If fluids move through metal, microbial corrosion can occur, and Corrolytics can detect it.
Because microbes evolve quickly, slow testing methods simply cannot keep up. “By the time a company gets lab results, the environment has changed completely,” Anwar explains. “You cannot manage what you cannot measure.”
A Scientist Steps Into the CEO Role
Anwar did not plan to become a CEO. But through the National Science Foundation's ICorps program, he interviewed more than 300 industry stakeholders. Over 95 percent cited microbial corrosion as a major issue with no effective tool to address it. That validation pushed him to transform his research into a product.
Since then, Corrolytics has moved from prototype to real-world pilots in Brazil and Houston, with early partners already using the technology and some preparing to invest. Along the way, Anwar learned to lead teams, speak the language of industry, and guide the company through challenges. “When things go wrong, and they do, it is the CEO's job to steady the team,” he says.
Why Houston
Relocating to Houston accelerated everything. Customers, partners, advisors, and manufacturing talent are all here. For industrial and energy tech startups, Houston offers an ecosystem built for scale.
What's Next
Corrolytics is preparing for broader pilots, commercial partnerships, and team growth as it continues its fundraising efforts. For anyone focused on asset integrity, emissions reduction, or industrial innovation, this is a company to watch.
Energy Tech Startups Podcast is hosted by Jason Ethier and Nada Ahmed. It delves into Houston's pivotal role in the energy transition, spotlighting entrepreneurs and industry leaders shaping a low-carbon future.
Energy Equation Partners, a London-based investment firm focused on clean energy companies, and New York-based Stonepeak have completed the acquisition of a 65 percent interest in JET Tankstellen Deutschland GmbH, a subsidiary of Houston oil and gas giant Phillips 66.
JET is one of the largest and most popular fuel retailers in Germany and Austria with a rapidly growing EV charging network, according to a news release. It also operates approximately 970 service stations, convenience stores and car washes.
“We are delighted to complete this acquisition and to partner with Stonepeak and Phillips 66 to take JET to the next level,” Javed Ahmed, managing partner of Energy Equation Partners, said in a news release. “This investment reflects EEP’s commitment to investing in established players in the energy sector who have the potential to make a meaningful impact on the energy transition, and we are excited to work alongside the entire JET team, including its dedicated service station operators, to realize this vision.”
The deal values JET at approximately $2.8 billion. Phillips 66 will retain a 35 percent non-operated interest in JET and received about $1.6 billion in pre-tax proceeds.
“Under Phillips 66’s ownership, JET has grown into one of the largest fuel retailers in Germany and Austria," Anthony Borreca, senior managing director and co-head of energy at Stonepeak, added in a news release. "We are excited to join forces with them, as well as Javed and the EEP team, who have long-standing experience investing in and operating retail fuel distribution and logistics globally, to support the next phase of JET’s growth.”
