Hydrogen has received considerable attention as an alternative to fossil fuels. The U.S. Department of Energy (DOE) investigates the technical and economic feasibility of promising new technologies, such as hydrogen fuel cells. A recent report for DOE identified three near-term markets for fuel cells: (1) Emergency power for state and local emergency response agencies, (2) Forklifts in warehousing and distribution centers, and (3) Airport ground support equipment markets. This report examines forklift propulsion systems and addresses the potential energy and environmental implications of substituting fuel-cell propulsion for existing technologies based on batteries and fossil fuels. Industry data and the Argonne Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation (GREET) model are used to estimate full fuel-cycle emissions and use of primary energy sources, back to the primary feedstocks for fuel production. Also considered are other environmental concerns at work locations. The benefits derived from using fuel-cell propulsion are determined by the sources of electricity and hydrogen. In particular, fuel-cell forklifts using hydrogen made from the reforming of natural gas had lower impacts than those using hydrogen from electrolysis.