Abstract: The use of coal bed methane (CBM) to fabricate diamonds by chemical vapor deposition (CVD) is proposed. The method uses a closed-loop system composed of CBM mining, CBM purification, the production of hydrogen from CBM for use in diamond growth, diamond fabrication and waste gas recovery. The requirements for the fabrication of diamonds of different grades for use in cutting tools, thermal management, and optical lens and field emission transistors are introduced as examples of the efficient utilization of CBM to produce different quality diamonds.