Contractors sue Woodinville climate startup over unpaid invoices

Modern Hydrogen, backed by Bill Gates, allegedly left small firms owed over $360,000 after abruptly ending work

Published on Mar. 10, 2026

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Several contractors are suing Modern Hydrogen, a climate startup based in Woodinville, Washington, alleging the Bill Gates-backed company failed to pay more than $360,000 in final invoices after abruptly ending their work last fall. The clean-energy company, once seen as a promising venture, has laid off most of its staff and sharply slowed operations, leaving small firms in the region worried about their financial survival.

Why it matters

The lawsuit against Modern Hydrogen highlights the risks and challenges facing startups in the clean energy sector, where even well-funded companies can struggle to maintain operations and meet financial obligations to contractors and suppliers. The situation also raises concerns about the impact on local small businesses that may have been relying on the work from Modern Hydrogen.

The details

According to reports, Modern Hydrogen, which operates a facility in Woodinville, is being sued by several contractors who say the startup failed to pay their final invoices after ending their work abruptly last year. The contractors claim they are owed a total of more than $360,000. Modern Hydrogen, which had been seen as a promising clean energy company backed by high-profile investors like Bill Gates, has reportedly laid off most of its staff and significantly slowed its operations in recent months.

  • Modern Hydrogen ended work with the contractors in the fall of 2025.
  • The contractors filed the lawsuit against Modern Hydrogen in early 2026.

The players

Modern Hydrogen

A clean-energy startup based in Woodinville, Washington that is backed by Bill Gates and other high-profile investors.

Contractors

Several small firms and businesses that were working with Modern Hydrogen and are now suing the company for over $360,000 in unpaid invoices.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

The contractors are seeking to recover the unpaid invoices through the lawsuit against Modern Hydrogen.

The takeaway

This case highlights the financial risks and challenges facing startups, particularly in the clean energy sector, and the potential impact on local small businesses that rely on work from these companies. It raises questions about the sustainability of some high-profile startups and the need for stronger protections for contractors and suppliers.