5 Houston-area companies named among world's most innovative for 2026

In The Spotlight

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 praise 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Hertha, founded in 2022, says traditional steelmaking relies on an outdated, coal-based multistep process that is costly, and contributes up to 9 percent of industrial energy use and 10 percent of global carbon emissions.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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This article first appeared on our sister site, EnergyCapitalHTX.com.

Sage Geosystems is the No. 3 most innovative startup in Texas. Photo via sagegeosystems.com

3 Houston startups named most innovative in Texas by LexisNexis

report card

Three Houston companies claimed spots on LexisNexis's 10 Most Innovative Startups in Texas report, with two working in the geothermal energy space.

Sage Geosystems claimed the No. 3 spot on the list, and Fervo Energy followed closely behind at No. 5. Fintech unicorn HighRadius rounded out the list of Houston companies at No. 8.

LexisNexis Intellectual Property Solutions compiled the report. It was based on each company's Patent Asset Index, a proprietary metric from LexisNexis that identifies the strength and value of each company’s patent assets based on factors such as patent quality, geographic scope and size of the portfolio.

Houston tied with Austin, each with three companies represented on the list. Caris Life Sciences, a biotechnology company based in Dallas, claimed the top spot with a Patent Asset Index more than 5 times that of its next competitor, Apptronik, an Austin-based AI-powered humanoid robotics company.

“Texas has always been fertile ground for bold entrepreneurs, and these innovative startups carry that tradition forward with strong businesses based on outstanding patent assets,” Marco Richter, senior director of IP analytics and strategy for LexisNexis Intellectual Property Solutions, said in a release. “These companies have proven their innovation by creating the most valuable patent portfolios in a state that’s known for game-changing inventions and cutting-edge technologies.We are pleased to recognize Texas’ most innovative startups for turning their ideas into patented innovations and look forward to watching them scale, disrupt, and thrive on the foundation they’ve laid today.”

This year's list reflects a range in location and industry. Here's the full list of LexisNexis' 10 Most Innovative Startups in Texas, ranked by patent portfolios.

  1. Caris (Dallas)
  2. Apptronik (Austin)
  3. Sage Geosystems (Houston)
  4. HiddenLayer (Austin)
  5. Fervo Energy (Houston)
  6. Plus One Robotics (San Antonio)
  7. Diligent Robotics (Austin)
  8. HighRadius (Houston)
  9. LTK (Dallas)
  10. Eagle Eye Networks (Austin)

Sage Geosystems has partnered on major geothermal projects with the United States Department of Defense's Defense Innovation Unit, the U.S. Air Force and Meta Platforms. Sage's 3-megawatt commercial EarthStore geothermal energy storage facility in Christine, Texas, was expected to be completed by the end of last year.

Fervo Energy fully contracted its flagship 500 MW geothermal development, Cape Station, this spring. Cape Station is currently one of the world’s largest enhanced geothermal systems (EGS) developments, and the station will begin to deliver electricity to the grid in 2026. The company was recently named North American Company of the Year by research and consulting firm Cleantech Group and came in at No. 6 on Time magazine and Statista’s list of America’s Top GreenTech Companies of 2025. It's now considered a unicorn, meaning its valuation as a private company has surpassed $1 billion.

Meanwhile, HighRadius announced earlier this year that it plans to release a fully autonomous finance platform for the "office of the CFO" by 2027. The company reached unicorn status in 2020.

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This article originally appeared on Energy Capital HTX.

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Report: Houston reclaims top 10 ranking among America's best cities

Houston has made a triumphant return to America's 10 best cities for 2026, certifying the city is a cornerstone of the country's growth and economic prosperity.

Houston ranks No. 9 nationwide in the annual "America's Best Cities" report from Canada-based real estate and tourism marketing firm Resonance Consultancy. Each year, the report ranks the relative qualities of livability, cultural "lovability," and economic prosperity in 393 American cities with metropolitan populations of 500,000 or more.

Dallas surpassed H-Town as the No. 8 best city in America, and the Lone Star State boasts a strong presence among the top 25. Austin and San Antonio, respectively, were named the 11th and 24th best American cities this year.

Previously, Houston was dubbed the 13th best American city in 2025, down from its No. 10 ranking in the 2024 report.

Rather than profiling each individual city like in past reports, the 2026 edition focuses on regional and state prosperity. Texas' economic dominance is second only to Florida's, and the state's growth is solidified by the Dallas-Houston-Austin "triangle," where each metro has its own distinct economic identity, but when combined "form one of the most formidable regional economies in the world."

"In our 2026 survey, Dallas ranks third nationally as the place Americans believe offers the best job opportunities, Austin fifth, and Houston seventh," the report's author wrote. "That concentration of perceived economic opportunity in a single state is unmatched, and the GDP data confirms it isn’t just perception."

After being named one of the best places to start a business or a career earlier in 2026, Houston has continued to punch above its weight with its success in tourism, education, and housing growth.

Overall, the report found a correlation between a city's population growth and its latest ranking, with bigger cities appearing higher up on the list. The top three best American cities — New York, Los Angeles, and Chicago — are coincidentally the three largest metros, while Dallas and Houston are the fourth and fifth largest but appear eighth and ninth on the list.

"Scale compounds at the large city level — more people generate more economic activity, more cultural infrastructure, more employer presence, which attracts more people," the report said.

The top 10 best cities in America for 2026 are:

  • No. 1 – New York
  • No. 2 – Los Angeles
  • No. 3 – Chicago
  • No. 4 – Miami
  • No. 5 – San Francisco
  • No. 6 – Seattle
  • No. 7 – Las Vegas
  • No. 8 – Dallas
  • No. 9 – Houston
  • No. 10 – Boston

New probe into Tesla after vehicle slams into Houston-area home at high speed

Tesla Talk

The top U.S. auto regulator opened an investigation Monday, June 22, after a Tesla using an automated driving feature slammed into a Texas home at high speed and killed a 76-year-old woman standing inside.

The National Highway Traffic Safety Administration said it's opening a special investigation into the Tesla Model 3 crash on Friday near Houston, a significant probe because the car was using technology that Elon Musk considers key to the company's future.

The Tesla CEO is rolling out robotaxis using automated software in several U.S. cities this year and plans to invite Tesla owners to put their cars into the fleet using the same system across the country.

The driver told the Harris County Sheriff's Office that he was using the technology, according to a police report on the crash, but it's not clear what role, if any, it played in the incident.

Tesla did not respond to a request for comment but the head of the company's artificial intelligence efforts suggested on social media later Monday that the self-driving feature was not to blame.

“In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area,” wrote Ashok Elluswamy on X, the platform that is now part of Musk's rocket company, SpaceX. “They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash.”

The police report noted that the driver was not drunk and is cooperating. It identified the woman killed as Martha Avila.

Video obtained by KHOU-TV shows the car traveling at top speed over the front lawn of a brick home in Katy, then ramming into a front room. The next shot shows the car encased in the home amid piles of crumbling plaster, split beams and bits of furniture.

The auto safety regulator, known as NHTSA, has launched several investigations into Tesla, including one late last year into 58 incidents in which Teslas reportedly violated traffic safety laws while using self-driving technology, leading to more than a dozen crashes and fires and nearly two dozen injuries.

A few months earlier, the NHTSA opened an investigation into why Tesla apparently had not been reporting crashes promptly as required.

As for special crash investigations, the NHTSA has opened 46 involving Teslas using self-driving or driver-assistance technology over the past decade, according to the agency's records. In more than a dozen of those crashes, at least one person — a driver, passenger or pedestrian — was killed.

Tesla stock fell sharply early last year as car sales plunged amid a boycott of Musk after he waded into politics, leading President Donald Trump's budget-cutting Department of Government Efficiency initiative and embracing European extremist candidates.

Musk has since shifted the Tesla story to one less about car sales and more about AI and robotaxis, and done so successfully. The stock is up 16% in the past year.

Intuitive Machines lands $1M grant to expand robotics operations

Expansion mode

Houston-based Intuitive Machines is expanding its operations around the country.

The space tech company—which has offices and labs in Texas, California, Arizona, Colorado and Maryland—announced that it has received a $1 million grant from Maryland Gov. Wes Moore through the state's Build Our Future Grant. The funding will go toward expanding Intuitive Machines’ Super Cislunar Robotics Assembly Building (Supa-CRAB) Mechanisms and Robotics Center of Excellence in Anne Arundel County.

The company will move into a 69,000-square-foot facility and build out additional lab and office space. It will also procure equipment that will allow for in-house Assembly, Integration and Test (AI&T) activities, according to a news release. Intuitive Machines says the expansion will take place this fall.

“This collaboration shows how industry, state programs, and education can reinforce one another,” Steve Altemus, CEO of Intuitive Machines, said in the release. “Maryland invests in innovation, companies grow and hire, students gain experience, and communities benefit from new opportunities and long-term career pathways. Together with Governor Moore, the state of Maryland, and Anne Arundel County leaders, we are building a permanent path to long-term lunar operations, an advanced robotics and mechanisms center of excellence, and a technology edge for our nation.”

Intuitive Machines first launched operations in Maryland in 2021 and has since expanded five times in the state. The company officially opened its robotics and mechanisms facility in 2024.

The Maryland team has built robotics and mechanisms for the Nova-C landers and IM-1 and IM-2 missions. In the future, Intuitive Machines expects the Maryland team to work on its IM-3 Rover Deployment Mechanism (RDM), a 360 pan-tilt camera for panoramic views, the Main Engine Gimbal (MEG), and the company's first data relay satellite, known as Altus-1.

Intuitive Machines moved into a new $40 million headquarters at the Houston Spaceport in 2023. The company announced an expansion of its lease last year.

The company announced a $175 million equity investment to fuel growth in March. It's since landed a $180 million NASA CLPS award to deliver seven payloads to the moon's Mons Malapert on the IM-5 mission.

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