This founder is making cheaper, cleaner steel
The steel industry isn’t exactly known for innovation. Very little has changed about purifying iron ore since the process was invented and commercialized in the 1850s.
The traditional steelmaking process relies heavily on coal, a fossil fuel, to convert iron ore into steel. This method is responsible for approximately 7% of global carbon emissions, which contribute to climate change. To put this into perspective, this is roughly equivalent to the carbon footprint of the entire fashion industry. The challenge of reducing these emissions is significant because steel production is not only energy-intensive but also operates on tight profit margins. Additionally, steel furnaces have long lifespans, often lasting decades, making it difficult for companies to justify the high costs of switching to cleaner technologies. This economic and technical inertia has slowed progress toward decarbonizing the industry.
Laureen Meroueh, the founder of Hertha Metals, has developed a new furnace design that simplifies the chemistry of steelmaking. Her method reduces the process to a single step, eliminating the need for multiple stages that traditional methods require. Instead of using coal, her furnace relies on natural gas, a fossil fuel that emits about 50% less carbon dioxide than coal when burned. According to Meroueh, this innovation cuts steelmaking emissions by at least half and reduces production costs by 25% compared to conventional methods. The furnace is designed to be more energy-efficient, addressing both environmental and economic concerns in the industry.
The potential impact of Hertha Metals' technology is significant because steel production systems are currently massive, inefficient, and require enormous amounts of energy. Even small improvements in energy efficiency can lead to substantial reductions in both costs and emissions. Iryna Zenyuk, director of the National Fuel Cell Research Center at the University of California, Irvine, highlights the value in reducing the scale of these production systems. However, implementing such changes is risky, as it requires disrupting established industrial practices. Meroueh’s approach focuses on making immediate improvements rather than waiting for a future zero-carbon system, which may not be feasible in the short term.
Laureen Meroueh, now 34 years old, has a strong background in engineering and sustainability. At the age of 12, she was accepted into a pilot program at Florida Atlantic University, where she took college-level courses instead of following a traditional high school path. She developed an early interest in engineering, studying topics such as calculus and ocean wave energy. Her passion for nature, fostered by spending time outdoors, motivated her to pursue a career in environmental protection. After earning her PhD in mechanical engineering from MIT, she worked at a green hydrogen startup before founding Hertha Metals in 2022. Her family background in entrepreneurship also influenced her decision to start her own company.
Hertha Metals operates a pilot plant in Conroe, Texas, which can produce one metric ton of steel per day. This scale is considered significant for a pilot facility, as Rajesh Swaminathan, a partner at Khosla Ventures and an investor in Hertha, notes. As of July 2026, Hertha has raised approximately $20 million in funding. Swaminathan emphasizes that the company’s ability to produce steel with relatively little funding is impressive, especially when compared to competitors who have spent far more—between $50 million and $100 million—to produce far less steel. The company plans to expand its operations with a new plant next to the existing one, aiming to produce 10,000 metric tons of high-purity steel per year by the end of 2027.
Hertha Metals has ambitious plans for growth. By 2030, the company aims to increase its annual steel production to 500,000 metric tons with the addition of a third production site. While this output represents only a small fraction of the approximately 80 million metric tons of steel produced annually in the United States, even producing one metric ton is considered an achievement in the industry. Meroueh’s long-term vision is to make steel production smarter and more sustainable, acknowledging that steel will remain a critical material. Her approach prioritizes incremental improvements using existing technologies rather than waiting for a fully decarbonized system, which may not be economically viable in the near future.
One of the key advantages of Hertha Metals’ furnace design is its flexibility. While the current plant uses natural gas to keep costs low, the technology is designed to eventually transition to a fully decarbonized system without requiring major hardware changes. This adaptability is important because other green steel methods, such as using **hydrogen** to remove oxygen from iron ore, are still under development and may not be cost-effective in the near term. Meroueh’s approach allows the company to make progress now while remaining open to future innovations. This strategy balances immediate economic and environmental benefits with long-term sustainability goals.
