America Has A Steel Start-Up. Yes, Really - EP 47 Laureen Meroueh
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode features Laureen Meroueh, founder and CEO of Hertha Metals, America's newest steel company founded in 2022. (00:40) Meroueh has developed a revolutionary single-step steelmaking process that uses natural gas instead of coal, potentially reducing costs by 30% and emissions by 50%. The company is already producing more than one ton of steel per day at their Houston facility and is planning to scale up to commercial production by 2030.
- Main Theme: Disrupting the 175-year-old steel industry with a cleaner, cheaper, and more flexible manufacturing process that could help America become a net steel exporter rather than importer.
Speakers
Laureen Meroueh
Founder and CEO of Hertha Metals, the first female inventor and founder in the steel industry. She holds a PhD in mechanical engineering and materials science from MIT, with undergraduate degrees in civil and mechanical engineering from the University of Florida. (05:00) Meroueh is a first-generation American from a Lebanese family and began her engineering career at age 13 through an accelerated program, finishing both engineering degrees by age 20.
Ashley Vance
Host of Core Memory podcast and technology journalist known for covering hard tech and innovative startups. He has extensive experience reporting on aerospace, industrial technology, and reindustrialization trends.
Key Takeaways
Leverage Natural Resource Advantages
The key to Hertha's breakthrough came from recognizing that natural gas in the US has become dramatically cheaper than metallurgical coal only in the last 15-20 years due to fracking. (00:50) Meroueh explains that this timing advantage wasn't available 100 years ago, which is why this process wasn't developed earlier. The lesson for professionals is to constantly reassess market conditions and resource availability - what wasn't economically viable yesterday might be revolutionary today.
Start with Deep Industry Research Before Disrupting
Before developing her technology, Meroueh conducted extensive research into existing approaches and spoke directly with steel industry incumbents about their challenges. (17:17) She asked steel producers what scale they needed to see before believing economic viability claims, and they consistently said one ton per day continuous production. This research-first approach helped her avoid common startup pitfalls and build credibility from day one.
Front-Load Technical Risk Reduction
Rather than building everything sequentially, Hertha ran parallel development streams - testing the science at gram scale while designing pilot plant equipment. (83:30) Meroueh designed their pilot plant to be configurable and modular so learnings from small-scale R&D could be implemented without starting over. This parallel approach dramatically accelerated their timeline from concept to one-ton-per-day production.
Focus on Cost Reduction, Not Just Environmental Benefits
Meroueh emphasizes that successful industrial innovation must cut costs, not just emissions. (87:38) She notes that previous climate tech approaches failed because they required green premiums rather than being cost-competitive. Her advice for any startup: "At the end of the day, we live in a capitalistic society, and you need to build on that." Solutions must work economically first, with environmental benefits as an additional advantage.
Build Bridges to Traditional Industry Players
Despite being a disruptive technology, Hertha actively partners with existing steel producers rather than just competing with them. (47:50) They plan to operate the "melt shop" (ore to liquid steel) while partners handle downstream processing like hot rolled coil production. This collaborative approach helps overcome industry skepticism and provides faster paths to market than trying to replace entire value chains.
Statistics & Facts
- The steel industry contributes almost 10% of global emissions, making it the highest emitter in the industrial sector, roughly equal to cement and on par with the entire transportation sector. (22:55)
- The US imports about 25% of its steel, making it the largest steel importer in the world, creating national security vulnerabilities in critical infrastructure. (35:30)
- The last blast furnace built in the US was constructed in 1979, with only 11 blast furnaces currently operating, all built in 1979 or earlier. (36:02)
