SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q



[x]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                    For the nine months ended - July 31, 1999

                                       OR

[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

                         Commission file number 0-25312

                       STARTECH ENVIRONMENTAL CORPORATION
             (Exact name of registrant as specified in its charter)

State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization                                Identification No.)
          Colorado                                               84-1286576

                             79 Old Ridgefield Road
                              Wilton, Connecticut         06897
                (Address of principal executive offices) Zip Code

                                 (203) 762-2499
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months,  and (2) has been subject to such filing  requirements
for the past 90 days.

                                   YES X   NO


Securities registered pursuant to Section 12(g) of the Act:

         Title of each class             Outstanding at September 13, 1999
         -------------------             ---------------------------------

        Common Stock - No Par                       6,903,257


<PAGE>

                       STARTECH ENVIRONMENTAL CORPORATION

                                      INDEX

                                                                        PAGE NO.
                                                                        --------

PART I - FINANCIAL INFORMATION
------------------------------

Item 1.   Financial Statements

             Balance Sheet - July 31, 1999
             and July 31, 1998                                             3

             Statement of Operations for the quarters ended
             July 31, 1999 and 1998                                        4

             Statement of Cash Flows for the quarters ended
             July 31, 1999 and 1998                                        5

             Notes to Financial Statements                                 6

Item 2.   Management's Discussion and Analysis of Financial
             Condition and Results of Operations                           7-8

PART II - OTHER INFORMATION
---------------------------

             Item 1.  Legal Proceedings                                    8
             Item 2.  Changes in Securities                                8
             Item 3.  Defaults Upon Senior Securities                      9
             Item 4.  Submission of Matters to a Vote of
                      Security Holders                                     9
             Item 5.  Other Information                                    9
             Item 6.  Exhibits and Reports on Form 8-K                     9

SIGNATURE                                                                 10
---------


                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION
                         ------------------------------

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.


                       STARTECH ENVIRONMENTAL CORPORATION
                                  BALANCE SHEET


                                                       July 31,       July 31,
ASSETS                                                   1999           1998
                                                     -----------    -----------
Current Assets:
         Cash and cash equivalents                   $ 2,520,435    $   282,957
         Accounts Receivable                             479,978        399,469
         Inventory                                       100,000        165,353
         Other current assets                             32,028         96,599
                                                     -----------    -----------

                  Total Current Assets                 3,132,441        944,378

         Fixed Assets -Net                                20,968         15,930
         Other Assets                                     19,010              0
                                                     -----------    -----------
                                                     $ 3,172,418    $   960,308
                                                     ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
         Accounts payable                            $   352,381    $   319,913
         Notes payable - short term                      850,000        100,000
         Other accrued expenses                           51,266         28,000
                                                     -----------    -----------

                  Total Current Liabilities          $ 1,253,647    $   447,913

Stockholders' (deficit) equity:
         Preferred stock, no par value
         10,000,000 shares authorized,
         shares issued and outstanding
         190,730 at July 31, 1999                      1,907,300              0

         Common stock, no par value,
         800,000,000 shares authorized;
         shares issued and outstanding:
         6,900,857 at July 31, 1999 and
         6,844,465 at July 31, 1998                    2,709,524      2,598,606
         Additional paid-in capital                       49,250            300
         Accumulated deficit Net Income (loss)        (2,747,303)    (2,086,512)
                                                     -----------    -----------

                Total Stockholders' (deficit) equity   1,918,771        512,394

                                                     $ 3,172,418    $   960,308
                                                     ===========    ===========


                        See notes to financial statements

                                       3
<PAGE>
<TABLE>
<CAPTION>

                                         STARTECH ENVIRONMENTAL CORPORATION
                                                STATEMENT OF OPERATIONS


                                               Quarter Ended      Quarter Ended    Nine Months Ended  Nine Months Ended
                                               July 31, 1999      July 31, 1998      July 31, 1999      July 31, 1998
                                               -------------      -------------      -------------      -------------

<S>                                             <C>                <C>                <C>                <C>
Revenue                                         $   591,092        $   448,972        $ 2,236,873        $   485,972

Cost of Sales                                       533,066            208,997          1,846,692            208,997
                                                -----------        -----------        -----------        -----------

Gross Profit                                         58,026            239,975            390,181            276,975

Operating Expenses
         Selling expense                             64,586              5,807            122,833            126,646
         General and administrative expense         426,039            236,146            983,452            665,566
                                                -----------        -----------        -----------        -----------

Total Operating Expense                             490,625            241,953          1,106,285            792,212

Gain(Loss) from Operations                         (432,599)            (1,978)          (716,104)          (515,237)


Other income (expense):
         Interest income                             10,121              5,985             34,775             21,325
         Interest expense                                 0             (2,250)                 0              (7500)
         Preferred Dividend expense                 (16,016)                 0            (16,016)                 0
                                                -----------        -----------        -----------        -----------

         Total other income (expense)                (5,895)             3,735             18,759             13,825

 Income tax expense                                   1,857                  0              2,107                  0
                                                -----------        -----------        -----------        -----------

Net Income (Loss)                               ($  440,350)       $     1,757        ($  699,452)       ($  501,412)
                                                ===========        ===========        ===========        ===========


Net Gain (Loss) per share                       $     (0.06)       $      0.00        $     (0.10)       $     (0.07)

Weighted average common
shares outstanding                                6,891,309          6,872,661          6,873,411          6,845,215
                                                ===========        ===========        ===========        ===========


                                           See notes to financial statements

                                                           4
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                           STARTECH ENVIRONMENTAL CORPORATION
                                                 STATEMENT OF CASH FLOWS


                                                 Quarter Ended      Quarter Ended     Nine Months Ended  Nine Months Ended
                                                 July 31, 1999      July 31, 1998       July 31, 1999     July 31, 1998
                                                 -------------      -------------       -------------     -------------
<S>                                               <C>                <C>                <C>                <C>
Cash flows from operating activities:
Net Income (Loss)                                 ($  440,349)       $     1,757        ($  699,453)       $  (501,412)
Depreciation                                            1,227              1,226              3,680              2,345
(Increase) decrease in Accts. Rec'v                   118,183           (362,469)           412,495           (399,469)
(Increase) decrease in Inventory                      128,288            (65,353)           552,454            (65,353)
(Increase) decrease in other assets                   122,031             33,089             47,368             17,231
Increase (Decrease) in Current Liabilities:
          Accounts payable                             41,968            224,889           (682,393)           252,746
          Notes Payable-Short Term                          0                  0            750,000                  0
          Accrued expenses                             18,266              2,250             22,268              7,105
                                                  -----------        -----------        -----------        -----------

Net cash used in operating activities                 (10,387)          (164,611)           406,419           (686,807)
                                                  -----------        -----------        -----------        -----------


Cash flows from investing activities:
Purchase of Equipment                                       0             (4,851)                 0            (18,276)
Preferred Offering                                  1,891,540                  0          1,957,550                  0
                                                  -----------        -----------        -----------        -----------

Net cash used by Investing activities               1,891,540             (4,851)         1,957,550            (18,276)
                                                  -----------        -----------        -----------        -----------



Net increase (decrease) in cash                   $ 1,881,153        $  (169,462)       $ 2,363,969        $  (705,083)


Cash at beginning of period                       $   639,283        $   452,419        $   156,467        $   988,040

Cash and cash equivalents at end of period        $ 2,520,436        $   282,957        $ 2,520,436        $   282,957



                                            See note to financial statements

                                                           5
</TABLE>
<PAGE>

                          NOTES TO FINANCIAL STATEMENTS


Note 1. Basis of Presentation

STARTECH   Environmental   Corporation   (the   "Company")  is  engaged  in  the
commercialization   and  continued   development  of  an  innovative  processing
technology for recycling industrial wastes.

Net profit  (loss) per share is  determined by dividing net profit (loss) by the
weighted average number of common shares outstanding  during the period.  Common
share equivalents,  which consist of stock that may be issuable upon exercise of
outstanding  stock  options and  warrants,  have been excluded from the weighted
average number of common shares since their effect is anti-dilutive.

Certain  reclassifications  have  been  made for  consistent  presentation.  The
reclassifications  have no effect on the net profit  (loss) for the period ended
July 31, 1999.

The information furnished is unaudited and reflects all adjustments  (consisting
of only normal recurring  adjustments) which, in the opinion of management,  are
necessary  for a fair  presentation  of the  financial  position  and results of
operations for the interim periods. The accompanying financial statements should
be read in  conjunction  with the  Company's  financial  statements  and related
footnotes  for the year  ended  October  31,  1998,  which are  included  in the
Company's  annual report on form 10-K. The results of operations for the quarter
ended July 31, 1999 do not  necessarily  indicate  the results  expected for the
full year.


Note 2. Equity Transactions

On April 20, 1999 the company  initiated  a $15  million  Convertible  Preferred
Private  Placement  Offering.  As of July 31,  1999  the  company  has  received
$1,907,300  which has met the $1 million minimum  subscription  requirement.  In
addition the company has  received,  during this  reporting  period,  $49,250 in
warrant monies which were applicable to a previous Private Placement.



                                       6
<PAGE>


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.


Results of Operations
---------------------

1999 vs 1998
------------

As  of  July  31,  1999  the  Company  has  earned  $2,236,873  in  revenue  for
professional  services  and  equipment  sales  primarily  to the  Unites  States
Government  (Department  of the Army).  In 1998 the Company  earned  $485,972 in
revenue for  professional  services.  Operating  expenses  were  $394,526 in the
quarter ended July 31, 1999  ($1,010,186 for nine months) compared with $241,953
in the quarter and  $792,212  for the nine months a year ago.  The nature of the
operating  expenses  continue to be  primarily  for selling,  demonstration  and
general and administrative purposes.

The Registrant was  incorporated  under the laws of the State of Colorado in May
1991 and has been dormant from 1991 to 1995.  During fiscal 1995, the Registrant
entered into  negotiations  with  Startech  Corporation  that  culminated in the
acquisition of Startech on November 17, 1995.

Liquidity and Capital Resources
-------------------------------

Registrant is and will continue to be dependent upon capital  contributions from
shareholders,  outside investors and bank loans for its operating  capital.  The
Registrant's  capital  resource  requirements  have  increased  due to increased
manufacturing,  marketing and administrative  demands. These needs were met from
operations of the Registrant's  normal business activity,  sales backlog and the
April 20, 1999 Preferred Private Placement offering.


General
-------

Startech   is  an   environmental   technology   corporation   engaged   in  the
commercialization  and  continued  development  of its Plasma Waste  ConverterTM
("PWC") systems for the recycling,  resource recovery, reduction and remediation
of  hazardous  and  nonhazardous  organic  and  inorganic  materials  and wastes
including radioactive wastes.

                                       7
<PAGE>



The Startech  Plasma  Waste  Converter is a  closed-loop  recycling  system that
converts  materials  formerly regarded as hazardous wastes into useful commodity
products.  The hazardous  waste can be organic and  inorganic,  in the form of a
gas,  liquid,  and solids or any combination  thereof.  Waste volume  reductions
higher than 300 to 1 have been  demonstrated.  Depending on the waste processed,
the principal  commodities produced by the system are a synthetic gas called PCG
(Plasma Converted Gas)TM, metals, and an obsidian-like inert silicate stone. The
PCG can be used as a chemical  feed stock to produce  polymers  and other common
industrial products, as a fuel to produce electricity, as a fuel source for fuel
cells,  as a heating plant fuel to reduce the cost and reliance on fossil fuels,
and in  desalinization  applications  to produce fresh water for  irrigation and
drinking.  The metals can be employed in the metallurgical  industry.  The stone
silicates  can  be  employed  in the  abrasives  industry,  and as an  aggregate
material for construction industry applications.


                           PART II - OTHER INFORMATION
                           ---------------------------


ITEM 1. LEGAL PROCEEDINGS.

The company and its Officers,  individually  and  personally,  except Leonard V.
Knap,  are  defendants in litigation  brought in  Bridgeport,  Connecticut,  USA
Federal Court, in February 1998 by John Easton of Canada.  The complaint demands
payment for commissions  and/or fees for services  rendered to acquire the funds
needed to consummate the reverse acquisition, that occurred on November 17,1995,
of Startech Corporation by Kapalua Acquisitions,  Incorporated.  The proceedings
are in their preliminary stages. The company does not believe there is any merit
to the claim. The company will file a counter claim against Mr. Easton.

No legal proceedings are known to be contemplated by governmental authorities.


ITEM 2. CHANGE IN SECURITIES.

No  constituent  instruments  defining the rights of the holders of any class of
registered securities of the Registrant have been materially modified. No rights
evidenced by any class of registered  securities have been materially limited or
qualified  by the  issuance or  modification  of any other class of  securities.
There are no working capital  restrictions or other limitations upon the payment
of dividends except as reported in the Registrant's FORM 10.

                                       8
<PAGE>


ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

There have been no defaults in the payment of principal  interest,  a sinking or
purchase  fund  installments,  or any other default no cured within thirty days,
with respect to any  indebtedness  of the  Registrant or any of its  significant
subsidiaries  exceeding  five percent (5%) of the total assets of the Registrant
and its consolidated subsidiaries.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

No matters  were  submitted  during the first half of the fiscal year covered by
this report to a vote of security holders.


ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. - (by reference)


     (a)  Exhibits.

          None


     (b)  Reports.

          No reports on FORM 8-K were filed during the quarter being reported.


                                       9
<PAGE>


                                    SIGNATURE


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                            STARTECH ENVIRONMENTAL CORPORATION
                                            ----------------------------------


Date: September 14, 1999                    By: /S/ Joseph F. Longo
      ------------------                    -----------------------
                                            Joseph F. Longo
                                            President



                                       10