A large quantity of coalbed methane directly exhausted to air has very great of influence on environment. The cost of conventional method for natural gas storage and transportation is too much. The 1m3 hydrate with clathrate crystal structure can envelop 164m3 pure methane. The new method to store and transport coalbed methane in hydrate form has such advantages as high safety and reliability, low cost, so it can replace the conventional methods for natural gas storage and transportation. The article introduces the principle and equipments for production of clathrate hydrate, and the advantages of storing and transporting coalbed methane in hydrate form. The aim is to prevent coalbed methane from being exhausted to air, and synthesize it into hydrate for its reutilization.