SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q


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


                 FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2002

                         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

                         15 Old Danbury Road, Suite 203
                            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 ____

The number of shares outstanding for each of Registrant's classes of Common
Stock are as follows:

         Title of each class                  Outstanding at March 07, 2002
         -------------------                  -----------------------------

     Common Stock - No Par Value                        9,769,863

<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION

                                TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION                                          PAGE NO.
------------------------------                                          --------

Item 1.   Financial Statements

          Consolidated Balance sheets - January 31, 2002 (unaudited)         3
          and October 31, 2001

          Consolidated Statements of operations for the three months         4
          ended January 31, 2002 and 2001 (unaudited)

          Consolidated Statements of cash flows for the three months         5
          ended January 31, 2002 and 2001 (unaudited)

          Notes to Consolidated Financial Statements (unaudited)            6-7

Item 2.   Management's Discussion and Analysis of Financial Condition       8-16
          and Results of Operations

          Signatures                                                         17


                                       2
<PAGE>
<TABLE>
<CAPTION>

                                     PART I - FINANCIAL INFORMATION
                                     ------------------------------
                                      ITEM 1. FINANCIAL STATEMENTS
                                   STARTECH ENVIRONMENTAL CORPORATION
                                      CONSOLIDATED BALANCE SHEETS


                                                                              (unaudited)      (audited)
                                                                              January 31,     October 31,
                                                                                  2002            2001
                                                                              ------------    ------------
<S>                                                                           <C>             <C>
ASSETS
                                  Current assets:
         Cash and Cash Equivalents ........................................   $  1,052,388    $  2,207,328
         Accounts receivable ..............................................        357,205         300,000
         Inventory ........................................................        274,466         279,502
         Other current assets .............................................         39,112           6,861
                                                                              ------------    ------------

                  Total current assets ....................................      1,723,171       2,793,691

         Property and equipment, net ......................................      1,773,435       1,791,863

         Other assets .....................................................         76,251          77,451
                                                                              ------------    ------------

                  Total assets ............................................   $  3,572,857    $  4,663,005
                                                                              ============    ============

LIABILITIES AND STOCKHOLDERS EQUITY
                               Current liabilities:
         Accounts payable .................................................   $     89,810    $    115,489
         Capital lease, current portion ...................................         39,005          38,920
         Other accrued expenses ...........................................        351,757         543,249
                                                                              ------------    ------------
                  Total Current liabilities ...............................        480,572         697,658

                  Long-term liability:
         Capital lease payable, net of current portion ....................         33,237          43,299
                                                                              ------------    ------------

                  Total liabilities .......................................        513,810         740,957
                                                                              ------------    ------------

Stockholders' (deficit) equity:

         Preferred stock, no par value 10,000,000 shares authorized; Shares
         issued and outstanding: 47,851 at January 31, 2002, (aggregate
         liquidation preference of $478,518); 47,511 (aggregate liquidation
         preference of 475,110) at October 31, 2001 .......................        478,518         475,110
         Common stock, no par value, 800,000,000 shares authorized;
         Shares issued and outstanding: 9,295,134 January 31, 2002
         and 9,282,880 at October 31, 2001 ................................     12,288,849      12,265,072
         Additional paid-in capital .......................................      1,742,745       1,742,745
         Accumulated deficit ..............................................    (11,451,065)    (10,560,879)
                                                                              ------------    ------------
         Total stockholders' equity .......................................      3,059,047       3,922,048
                                                                              ------------    ------------
                  Total liabilities and stockholders' equity ..............   $  3,572,857    $  4,663,005
                                                                              ============    ============


                       See accompanying notes to consolidated financial statements

                                                   3
<PAGE>


                            STARTECH ENVIRONMENTAL CORPORATION
                           CONSOLIDATED STATEMENT OF OPERATIONS
                                        (UNAUDITED)


                                                     Three Months Ended    Three Months Ended
                                                      January 31, 2002      January 31, 2001
                                                      ----------------      ----------------

Revenue ..........................................      $   116,205            $         0

Cost of sales ....................................           71,973                      0
                                                        -----------            -----------

Gross profit .....................................           44,232                      0
                                                        -----------            -----------

Operating expenses
         Selling expense .........................          210,174                212,283
         Research and Development ................           50,444                 27,733
         General and administrative expense ......          677,403                541,372
                                                        -----------            -----------

Total operating expense ..........................          938,021                781,388
                                                        -----------            -----------

Loss from operations .............................         (893,789)              (781,388)
                                                        -----------            -----------


Interest income ..................................           10,319                 80,072
                                                        -----------            -----------




Loss before Income Taxes .........................         (883,470)              (701,316)
                                                        -----------            -----------

Income tax expense (benefit) .....................           (1,693)                10,860
                                                        -----------            -----------

Net loss .........................................      $  (881,777)           $  (712,176)
                                                        ===========            ===========

Net loss .........................................      $  (881,777)           $  (712,176)
Less: preferred dividends ........................            8,409                 78,073
                                                        -----------            -----------
Loss attributable to common shareholders .........      $  (890,186)           $  (790,249)
                                                        ===========            ===========

Net loss per share ...............................      $     (0.10)           $     (0.10)
                                                        ===========            ===========

Weighted average common
shares outstanding ...............................        9,287,877              8,151,216
                                                        ===========            ===========


             See accompanying notes to these consolidated financial statements

                                             4
<PAGE>


                                 STARTECH ENVIRONMENTAL CORPORATION
                                       STATEMENT OF CASH FLOWS
                                             (UNAUDITED)


                                                                Three Months Ended    Three Months Ended
                                                                 January 31, 2002      January 31, 2001
                                                                 ----------------      ----------------

Cash flows from operating activities:
Net loss ....................................................      $  (881,777)           $  (712,176)
Adjustments to reconcile net loss to net cash provided
By operating activities:
Depreciation ................................................           45,893                 19,293
401K plan match made by the issuance of shares ..............           18,777                 16,092
Expenses paid through the issuance of common stock ..........                0                  8,706
(Increase) decrease in accounts receivable ..................          (57,205)                     0
(Increase) decrease in inventory ............................            5,036                (38,196)
(Increase) decrease in other current assets .................          (32,251)               (41,983)
(Increase) decrease in other assets .........................            1,200                      0
Increase (decrease) in accounts payable .....................          (25,679)               (10,983)
Increase (decrease) in accrued expense ......................         (191,492)              (144,476)
                                                                   -----------            -----------

Net cash used in operating activities .......................       (1,117,498)              (903,723)
                                                                   -----------            -----------

Cash flows used in investing activities:
Capital expenditures ........................................          (27,465)              (265,670)
                                                                   -----------            -----------

Cash flows from financing activities:
Payment for capital leases ..................................           (9,977)                (8,490)
Proceeds from common stock issuance .........................                0                210,000
                                                                   -----------            -----------

Net cash provided by financing activities ...................           (9,977)               201,510
                                                                   -----------            -----------

Net increase (decrease) in cash .............................       (1,154,940)              (967,883)
Cash at beginning of period .................................        2,207,328              5,221,154
                                                                   -----------            -----------

Cash and cash equivalents at end of period ..................      $ 1,052,388            $ 4,253,271
                                                                   ===========            ===========
Supplemental Discloser- Taxes Paid  (refunded) ..............           (1,693)                10,860
                                                                   ===========            ===========


                     See accompanying notes to consolidated financial statements

                                                 5
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<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements of Startech Environmental Corporation
(referred to herein as the "Company", unless the context indicates otherwise)
presented herein are unaudited. In the opinion of management, these financial
statements include all adjustments necessary for a fair presentation of the
financial position. Results for the three months ended January 31, 2002 are not
necessarily indicative of results for the entire year. The accompanying
financial statements should be read in conjunction with the Company's financial
statements and related footnotes for the year ended October 31, 2001 which are
included in the Company's annual report on form 10-K for the period ended
October 31, 2001.

Basic earnings per share are calculated by dividing net income by the weighted
average number of common shares outstanding. For the three months ended January
31, 2002 and 2001, the basic weighted average shares outstanding were 9,287,877
and 8,151,216. Diluted earnings per share reflect net income divided by the
weighted average number of common shares, dilutive stock options outstanding,
and the outstanding convertible preferred shares. For the three months ended
January 31, 2002 and 2001, the weighted average number of common shares,
dilutive stock options, and outstanding convertible preferred shares outstanding
were 10,923,457 and 9,069,179 respectively.

Note 1. Basis of Presentation:

On November 17, 1995, Startech Corporation, a private Connecticut corporation,
was acquired in a reverse acquisition, in which all the then issued and
outstanding shares of common stock of Startech Corporation were exchanged for
4,000,000 shares of Kapalua Acquisitions, Inc.'s common stock. After the
acquisition and exchange of stock, the former shareholders of Startech
Corporation owned 80.5% of the common stock of Kapalua Acquisitions, Inc.

On January 2, 1996, Kapalua Acquisitions, Inc. changed its name to Startech
Environmental Corporation. The financial statements of Startech Environmental
Corporation include all of the accounts of Startech Corporation. This
acquisition has been accounted for under the purchase method in the accompanying
financial statements. The fiscal year end for both companies before the
acquisition was October 31, and the financial statements for all periods
presented have been restated to reflect the combination of the two companies.

Note 2. Capital Lease Obligation:

The Company has entered into capital lease obligations for computer, telephone,
and capital equipment. The term of the leases range from 24 to 39 months, with
principal and interest due in aggregate monthly installments of $4,056 at
interest rates ranging from 0% to 32.3%. The equipment was capitalized at
$117,083 and is being depreciated over five to fifteen years. Depreciation
expense for the three months ended January 31, 2002 was $29,055.

Note 3. Equity Transactions

For the three months ended January 31, 2002 the Company declared and paid a
stock dividend on its Series A convertible preferred in the amount of $8,409,
which represented 841 preferred shares.

                                       6
<PAGE>


Note 4. Cash Flow

During the three months ended January 31, 2002 the Company had non-cash
transactions. The following is a listing of these transactions and the dollar
value of the stock associated with these transactions.

<TABLE>
<CAPTION>


Three months ended January 31, 2002 and 2001      January 31, 2002      January 31, 2001
--------------------------------------------      ----------------      ----------------
<S>                                                             <C>               <C>
Common shares for services rendered                             $0                $8,706
Preferred stock dividend                                     8,409                78,073
Series A convertible preferred shares
  converted to common shares                                 5,000             1,220,440
Accrued Preferred Dividends                                  3,170                33,485
401k Plan Match                                             18,777                16,092

</TABLE>


Note 5. Interim Financial Information (Unaudited)

The interim financial statements of the Company for the three months ended
January 31, 2002 and 2001, included herein, have been prepared by the Company,
without audit, pursuant to the rules and regulations of the SEC. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principals generally accepted in the
United States of America have been condensed or omitted pursuant to the rules
and regulations relating to interim financial statements.

Note 6. Revenue Recognition

The Company recognizes revenue on the sale of its manufactured products at the
date of shipment. Revenues earned from consulting and design services are
recognized when the services are completed.

Note 7. Employee Benefit Plan

Contributions for the three months ended January 31, 2002 were $18,777, which
represents approximately 7,459 shares of our common stock.


                                       7
<PAGE>


CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q contains forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward looking statements, annual reports and other
periodic reports and filings of the Company filed with the Securities and
Exchange Commission. All statements, other than statements of historical facts,
which address the Company's expectations for the future with respect to
financial performance or operating strategies, can be identified as
forward-looking statements. As a result, there can be no assurance that the
Company's future results will not be materially different from those described
herein as "believed," "anticipated," "estimated" or " expected," which reflect
the current views of the Company with respect to future events. We caution
readers that these forward-looking statements speak only as the date hereof. The
Company hereby expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any such statements to reflect any change
in the Company's expectations or any change in events, conditions or
circumstances on which such statement is based.


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

Overview

Our core Plasma technology addresses these waste and resource issues by offering
remediation solutions that are integrated with a range of equipment solutions
and services. These products add value to our customers' business so they can
now realize revenue streams from tipping fees, as well as from the sale of
resulting commodity products and services. Alternatively, this will allow them
to generate the product they need while at the same time using a zero cost
basis, or revenue generating, source of raw material (waste).

Since 1995 we have been actively discussing the superiority of plasma over other
forms of waste remediation technologies. This ongoing education of the public
and government continues to this day. Like every new technology we have been met
with varying degrees of resistance. In 2000, recognizing the increasing
importance of alternative energy and power sources in general, and hydrogen in
particular, we expanded our product line to include a hydrogen separation
technology we named StarCell(TM). Working in conjunction with our core product,
the Plasma Converter(TM), StarCell provides a green and renewable source of
hydrogen to power forward the hydrogen economy. In 2002 this brings significant
change and, we believe, greater shareholder value. Due to many of the factors
mentioned above, as well as the rising comfort level with plasma based
technologies through our educational and informational efforts we are now being
greeted by a much more receptive marketplace. We have taken steps to transform
our business model from being solely a seller of equipment to a total solutions
provider, including facility ownership or management.

Our business model and its market development strategies arise from our mission,
which is to change the way the world views and employs discarded materials; what
many would now call waste. We expect to achieve this objective by strategically
marketing a series of products and services emanating from the core Plasma
Converter (TM) technology, resulting in saleable fossil fuel alternatives while
providing a safer and healthier environment. This shifting strategy will be
implemented through the use of our enhanced business model that provides for
build own operate/build own transfer (BOO/BOT) facilities, joint development
projects, engineering services and direct equipment sales with after sales
support and service.

                                       8
<PAGE>


Key to Startech's development of world markets is its sales network. The Company
sells systems through independent representatives and distributors, which helps
to keep sales costs variable and low. Representatives are paid a commission on
sales. Distributors purchase systems, mark them up, and re-sell them to
customers. As well, distributors are responsible for supplying after sales parts
and service.

Startech senior management may make direct sales to house account customers.
Such customers might include large corporations with activities in many states
or countries, or sovereign governments where the complexity of the bidding
process on projects requires a large degree of Company time and attention. House
account sales are not, however, limited to these types of sales.

We manufacture modular, skid-mounted systems that are easy to transport in
standard tri-modal containers for shipment to any market in the world. As sales
are on an FOB basis, all shipping and related costs are absorbed by the
customer. An exception to this arrangement is where Startech would be shipping
systems for a wholly owned Build Own Operate project.

The Company requires down payments and progress payments to be scheduled (for
direct sales and co-venture projects) so that cash flow in the manufacturing
process will be positive. Startech will obtain project financing against
guaranteed waste streams/ tipping fees for BOO projects to fund manufacturing,
shipping, and installation costs before facility startup. As well, the Company
will incorporate performance insurance for BOO projects to guarantee performance
on the specific waste stream to be processed as well as the obtaining of
necessary local permits to begin operation.


Plasma Converter(TM) development and technology

We believe that the primary factors that create demand for our Plasma Converters
include the need for customers to:

     o    Reduce the costs for hazardous and toxic waste disposal;
     o    Eliminate personal and organizational liability associated with
          hazardous and toxic waste disposal;
     o    Comply with present and anticipated environmental regulations in a
          cost-effective manner;
     o    Recover products for use or sale; and
     o    Destroy wastes completely, safely and irreversibly.

We believe our Plasma Converter meets customers' needs because our system:

     o    Reduces the cost and risk associated with hazardous waste generation
          and disposal;
     o    Performs safer than prevailing environmental standards;
     o    Converts wastes into products for use or for sale;
     o    Destroys wastes safely and irreversibly; and
     o    Comes in small and large system capacities, in stationary and mobile
          configurations.

                                       9
<PAGE>


Plasma Converter Development And Technology

A device generally referred to as a plasma torch, although there is no fire
involved in the device, produces the Plasma lightening-like arc in the Plasma
Converter vessel to produce a plume of radiant energy. The Plasma Converter
therefore is an electrically driven system that produces this intense field of
radiant energy within the Plasma vessel that causes the dissociation of the
molecular bonds of solid, liquid, and gaseous compounds or materials of both
hazardous and non-hazardous wastes. We refer to this destruction process as
"molecular dissociation."

Dissociation causes the molecules of the waste material to be separated into
their elemental components (atoms), and reformed by the Startech System into
special recoverable, commodity products. The process is not combustion or
burning process, and the system should not be confused with an incinerator or a
vitrification process. It is the intense energy field produced by the plasma
plume within the Plasma Converter vessel that drives the dissociation process.

The Plasma Converter vessel operates at normal atmospheric pressure quietly and
safely. While the interior temperature of the plume is about 30,000 degrees
Fahrenheit, the temperature of the refractory walls inside the vessel is
maintained at about 3,000 degrees Fahrenheit and is the lowest temperature
experienced within the vessel. On the average most waste material will be
dissociated or melted at temperatures exceeding 6,000 degrees Fahrenheit.

The Plasma Converter consists of many well-proven process components currently
used in the metallurgical and chemical industries. Solid wastes being fed to our
system are automatically fed to the system through an air-locked infeed port,
and the feeding is ordinarily on a continuous basis. Liquids, gases and sludges
can also be fed or pumped directly into the vessel through a pipe port. Bulk
solids, liquids, gases and sludge may be fed in and processed simultaneously.

The Plasma Converted Gas (PCG)(TM) synthesis gas recovered from our system,
after dissociation, is drawn out of the top of the vessel and put through our
gas-polishing unit. The molten silicates, inorganics and metals, if any, are
removed at the lower side of the Plasma Converter vessel through a melt
discharge port and recovery procedure.

Recovered products can be used or sold as commodities for use in various
manufacturing processes. It is expected that most of the Plasma Converted Gas
will be used as a fuel gas and to a lesser degree, as a chemical feed stock;
silicate materials recovered will be used in the ceramics, abrasives or the
construction industries; the metallic components can be used or be readily
available for sale with little or no additional processing. There is a newly
developing interest in PCG(TM) to produce hydrogen by use of our patented
StarCell(TM) system. The economic justification for the use of our systems in
hazardous waste applications does not depend on any revenues from the use or
sale of the recovered commodity products, but the emergence of StarCell Hydrogen
may modify that attitude.

Recovered Commodity Products

The Plasma Converter processes the wastes (matter) in such a way that the
elemental components of the feedstock can be recovered in from one to three
distinct phases:

     (1)  synthesis gas (PCG(TM), Plasma Converted Gas) that exits the top of
          the chamber;

                                       10
<PAGE>


     (2)  inorganic, glass-like (obsidian-like) silicates which form a separate
          layer above the liquid metal (if there is a sufficient quantity of
          metal in the feed stock, with small quantities of metal encapsulated
          in the silicate stone); and

     (3)  liquid metallic elements, if in sufficient quantities, which collect
          and are automatically discharged at the base of the vessel.

Depending on the composition of the feedstock, any one phase may be produced,
any two phases may be produced, or all three may be produced. However, the
Company's experience indicates that the most likely commodity-product
recover-phase will be in two parts:

     (1)  the PCG(TM)GAS-PHASE; and

     (2)  the SOLID-PHASE in which the inorganic silicate, containing metals,
          will be produced.

Energy Produced And Volume Reduced

Carbon is abundantly present in the products and the wastes of the industrial
world. Such materials are inherently rich in latent chemical energy such as one
would find in fuel. When carbonaceous waste feedstocks of many industrial
wastes, infectious hospital waste, municipal solid waste, shipboard waste, and
such are processed, the Startech system will consume 1 unit of electrical energy
while producing about 4 units of energy residing in the PCG(TM). With the
improved efficiencies of electrical generating units, the 4 units of energy
residing in the PCG(TM) can be used to create 2 units of electrical energy.

Materials such as scrap tires, for example, will produce recovered commodity
products in two phases: the PCG(TM) gas phase and the metal phase, if metal
exists. Because materials such as plastics, solvents, and tires are so rich in
energy, they will produce a relatively large amount of PCG(TM) with a
high-energy content that will result in approximately 6-8 units of recovered
PCG(TM) energy for each unit of electrical energy used in the process.

In some applications, the Converter will produce enough energy for its own
needs, and produce a surplus that can be sold to the local electrical grid, or
used in the customer's facility to reduce the need for purchased power or
purchased fuel. Not all wastes produce PCG(TM). For example, processing
contaminated soil will produce no appreciable amount of PCG(TM).

The volume reduction of these solid wastes, when processed in the Plasma
Converter, is approximately 300 to 1. Waste streams composed primarily of
hazardous or non-hazardous paper, cloth, plastic, food, pharmaceutical,
explosives, paints, solvents, PCBs, confiscated drugs, filters, oils, and so on
will result in so few solids as to produce volume reductions approaching
infinity. Materials such as this are also very rich in elements such as carbon,
oxygen, and hydrogen and the processing results almost entirely in the PCG(TM)
commodity synthesis gas. In addition to the volume reduction, none of the
remaining materials, if any, are hazardous in nature.

Waste feedstocks that have a relatively high metal content will produce a
separate liquid metal phase that can be recovered directly from the system for
resale or reuse in the metallurgical industry.

                                       11
<PAGE>


The recent entry of StarCell into the market is moving the interest of PCG(TM)
use for plant heating and cooling to a new interest in PCG(TM) use for the
production StarCell Hydrogen for fuel cells and for direct hydrogen powered
engines.

Our system can also achieve volume reductions on low-level radioactive surrogate
waste of approximately 300 to 1. Other present methods of volume reduction
include compaction and incineration that produce overall volume reductions of
about 8 to 1. Our system will not reduce the radioactivity of the low-level
radioactive waste nor do we believe that can be done by any other system, but
the volume of that waste may be significantly reduced. Industries that may
benefit from this process are utilities, research laboratories and hospitals
that store the reduced low-level radioactive waste material on-site until it can
be shipped off site to a special repository. The cost for that method can be
many thousands of dollars per ton. The continued availability of the few
repository sites that exist, are problematic and uncertain. We believe our
system can increase a site's storage capacity.

What is Plasma?

Plasma is simply a gas (air) that the Plasma Converter ionizes so it becomes an
effective electrical conductor and produces a lightning-like arc of electricity
that is the source of the intense energy transferred to the waste material as
radiant energy. The arc in the plasma plume within the vessel can be as high as
30,000 degrees Fahrenheit ... three times hotter than the surface of the Sun.
When waste materials are subjected to the intensity of the energy transfer
within the vessel, the excitation of the wastes' molecular bonds is so great
that the waste materials' molecules break apart into their elemental components
(atoms). It is the absorption of this energy by the waste material that forces
the waste destruction and elemental dissociation.

How The System Works

The basic Plasma Converter system consists of the following:

         In-feed System
         Plasma Vessel
         Gas Polisher
         Computer Control Station
         Power Supply

Figure 1. Process Overview of PCS
---------------------------------


[OBJECT OMITTED]

                                       12
<PAGE>


Feed System
-----------

The feed mechanism can simultaneously accommodate any proportion or combination
of solid, liquid and gaseous feedstocks. Solid wastes, depending upon their
composition, can be pumped, screw fed, or ram fed into the plasma vessel. A
shredder ahead of the feed system may be appropriate to achieve size reduction
or object separation prior to direct system feed.

Liquid wastes, including sludges, can be pumped directly into the PCS through
the wall of the plasma vessel through a special infeed nozzle. The liquid feed
system is designed to also accommodate any entrained solids that may be present.

Similarly, gaseous feedstocks may also be introduced into the plasma vessel
through a specially designed nozzle.

Plasma Vessel
-------------

The plasma vessel is a cylindrical two-part container made of stainless steel
with an opening in the roof through which the plasma torch is inserted. The
vessel is lined with insulation and refractory to allow both maximum retention
of internal energy and to protect the stainless steel container from the intense
heat inside the vessel. The plasma vessel is equipped with inspection ports
(including a video camera so the operator can see real time images inside the
vessel to assist in PCS operation), openings for introduction of feedstocks, and
an exit port for removal of excess molten material. The smaller vessels are
designed to remove molten material periodically through an automated tipping
mechanism during which time the vessel may or may not remain in continuous
operation. A design enhancement incorporated into the most recently constructed
system is a continuous melt extraction feature which maintains the level of
molten material in the plasma vessel at or below a preset limit without
interrupting the operation of the system. This melt extraction system can be
deployed with all sizes of Plasma Converters.

The plasma vessel is specially designed to ensure that no feedstock material is
able to reach the exit port without first passing through the plasma energy
field and undergoing complete molecular dissociation. The method by which this
is accomplished forms a part of Startech's intellectual property. In addition,
the plasma vessel is maintained at a slight negative pressure to ensure that no
gases can escape to the atmosphere.

The plasma torch system is a commercially available product that Startech can
purchase from any number of reputable vendors. Comparable plasma systems have
been used extensively in the metallurgical industry for decades. The most
maintenance-intensive aspect of the PCS is the need to periodically replace
electrodes, which occurs approximately every 300 to 500 hours of operation.
Electrode replacement can be accomplished in approximately 30 minutes thus
ensuring minimum downtime of the PCS.

The PCS is also equipped with a torch positioner system that allows the operator
to aim the torch at different points within the plasma vessel. This aspect of
the PCS allows the operator to quickly and efficiently treat feedstocks as they
enter the vessel and move around inside the vessel to avoid any build-up of
solidified melt that may occur on the vessel walls.

                                       13

<PAGE>


Gas Treatment System
--------------------

The gas treatment system is comprised of six stages:

     o    High temperature cyclone separator to remove particulates
     o    Quench stage (with heat recovery, if desired)
     o    Cartridge dust collector to remove particulates
     o    Selective catalytic reduction to remove NOx
     o    Packed column scrubber to remove acids and volatized metals
     o    Final polishing

High Temperature Cyclone Separator

The initial step of the gas treating process is a pre-quench in which the PCG is
cooled from approximately 1000(degree)C down to 650(degree)C by direct water
injection with a conventional spray dryer arrangement. The PCG then flows
through a refractory lined pipe into a conventional, insulated cyclone
fabricated with high temperature alloy and designed to operate at high
temperatures. The purpose of the cyclone is to remove particulate matter, which
is then collected and batch-fed back into the plasma vessel.

Quench

PCG then flows to a spray dryer designed to rapidly reduce the gas temperature
from approximately 650(degree)C down to 120(degree)C. The importance of this
temperature reduction is to ensure that dioxins and furans, troublesome
by-products of incineration, do not form. In order for dioxins and furans to
form, the gas would need to remain in a specific temperature zone (e.g.,
190(degree)C to 330(degree)C) for some period of time - conditions which are
precluded by the quench.

Cartridge Dust Collector

PCG then flows to a commercial pulsejet cartridge dust collector with
high-temperature cartridges and heating elements to prevent condensation. This
unit is capable of automatically "blowing back" collected solids that are
collected and batch-fed back into the plasma vessel.

Selective Catalytic Reduction (SCR)

Upon exiting the dust collector, the PCG is reheated to approximately
310(degree)C for selective catalytic reduction of NOx in a standard unit
designed for this application where hydrogen present in the PCG reacts with NOx
to form atmospheric nitrogen and water. During periods where there is no
hydrogen in the PCG (e.g. during start-up, with processing materials that do not
contain carbon), urea is added to reduce the NOx.

Packed Column Scrubber

Upon exiting the SCR, PCG undergoes a final quench with direct water injection
to reduce the temperature below 50(degree)C. This prepares the PCG for acid gas
removal, which is accomplished in a standard horizontal packed column scrubber.
Other inorganic species dissolve into the scrubbing liquid as common ions
including chloride, fluoride, sulphate, phosphate, sodium and calcium. To manage
the build-up of salts, the scrubbing solution is removed and replenished with
fresh water. The wastewater typically requires no further treatment prior to
discharge to sewer, except in the event there is a high concentration of heavy
metals entering the system as feedstock. Approximately 75% of metals go into the
melt with the remainder being volatilized and entrained in the PCG where they
are captured in the scrubber and carbon filter. The wastewater also contains
particulates below one micron.

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<PAGE>


Final Polishing

Final polishing of the PCG is then accomplished by passing the gas through a
mesh mist eliminator, a standard HEPA filter and granular activated carbon
filter.

Finally, a standard variable speed fan at the exit of the gas treatment train
pulls PCG through the entire system and maintains a constant, slight negative
pressure within the plasma vessel.

The system has been designed so that it is comfortable, intuitive, and easy to
use. The skill level of the operator need not be any higher than one having a
reasonable technical aptitude.

As of February 2001 we completed work on our next generation Plasma Converter
that is being used for our demonstration and training unit in our Bristol,
Connecticut facility. The facility has been operational and has been a very
active marketing tool in showcasing our technology to potential customers,
investors, and governmental agencies. We have been proactive in utilizing this
facility for training such as Eiko Systems Corp. and also running some surrogate
testing for specific customers. We expect testing activity to increase in 2002
as more and more companies and governmental agencies look to validate our
technology for their specific applications.


Recent Developments
-------------------

Dec 18, 2001 we announced we have retained CEOcast, Inc. as an
investment-banking advisor. CEOcast will assist the Company in securing capital
and is currently seeking to raise $5 million in a private placement equity. As
of March 1st we have raised $1.16 million and are continuing to have discussions
with potential investors to raise the remaining capital.

On December 14th, 2001 we announced the retirement of Joseph F. Longo, of our
former CEO and President effective January 11, 2002. Joseph S. Klimek, who was
the COO and Executive Vice President, has succeeded Mr. Longo, and has been
appointed to the position of CEO and President.

On November 28th we announced that a major international insurance and financial
services firm is now offering performance insurance that guarantees the
operating warranties of the Company's Plasma Converter. There are two principal
parts to the coverage: The first will guarantee the System's operating
performance; and the second will guarantee that the System will satisfy all the
environmental requirements for permitting in the Country or State of operations.


Result of Operations
--------------------

Comparison of three months ended January 31, 2002 and 2001

Revenues. Our total revenues were $ 116,205 for the three months ended January
31, 2002, as compared to $ 0 for the same period in 2001, an increase of $
116,205 or 100.0%. The increase is due to an additional order for a specific
sub-system from Eiko, as well as related packing and shipping charges for the
entire Eiko shipment to Japan. This Eiko contract represented all of the
revenues for the three months ended January 31, 2002.

                                       15
<PAGE>


Gross profit. Our gross profit was $44,232 for the three months ended January
31, 2002 an increase of $44,232 or 100.0% from the same period in 2001. Our
gross margins on revenue were 38.1% for the three months ended January 31, 2002
versus 0.0% for the three months ended January 31, 2001.

General and administrative expenses. Our general and administrative expenses for
the three months ended January 31, 2002 were $677,403 an increase of $136,031,
or 25.1%, from the same period in 2001. This increase is due mainly to increased
depreciation expense, a non-cash item, which is directly related to our asset
purchases of property and equipment. There was an increase in salaries due to
the hiring of additional personnel as well as related expenses such as group
medical, group insurance and applicable federal and state payroll taxes.

Research and development expenses. Our research and development expenses for the
three months ended January 31, 2002 were $50,444 up 81.9%, from the same period
in 2001. The increase is related to costs associated with our engineering and
design advances of the Plasma Converter & sub-systems.

Selling expenses. Our selling expenses for the three months ended January 31,
2002 were $210,174 a decrease of $2,109 or less than 1%, for the similar period
in 2001. The costs related to selling expenses comprised of marketing activities
for new and active customers, and for demonstrations at our Bristol showroom
facility.

Interest income. Our interest income for the three months ended January 31, 2002
was $10,319, as compared to $80,072 in the similar period 2001 a decrease of
87.1%. The decrease is due to lower cash balances and lower interest rates
earned on our investments resulting from the Federal Reserve lowering short-term
interest rates.

Income taxes. During the three months ended January 31, 2002 we received a
refund of corporate income tax paid to the state of Connecticut for $1,693 as
compared to tax payments of $10,860 in the similar period 2001. We have minimal
tax obligations due to the fact that we have not had meaningful profitability to
this point. We have loss carry forwards of $8.7 million to offset against future
profits.

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

As of January 31, 2002, we had cash of $1,052,388 and working capital of
$1,242,599. During the quarter ended January 31, 2002, our cash decreased by
$1,154,940. This was primarily due to higher employee, insurance and general
corporate related expenses for the three months ended January 31, 2002.

Our investing activities have consisted primarily of short-term high quality
liquid investments, with maturities with three months or less when purchased,
which are considered cash equivalents. The primary investments are high quality
commercial paper, U.S. treasury notes and Treasury-bills.

For the three months ended January 31, 2002 the Company declared a quarterly
dividend on its Series A convertible preferred in the amount of $8,409, which
was paid by the issuance 841 preferred shares.

We believe that cash generated from operations, our current cash balances, and
other sources of capital, will be sufficient to satisfy our projected working
capital and planned capital expenditures for at least 12 months.


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<PAGE>


                                    SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, on this 15th day of
March 2002.


                                         STARTECH ENVIRONMENTAL CORPORATION
                                         (Registrant)

                                         BY: /S/ Joseph S. Klimek
                                         ------------------------
                                         Joseph S. Klimek
                                         CEO, President

                                         BY: /S/ Robert L. DeRochie
                                         --------------------------
                                         Chief Financial Officer,
                                         Vice President Investor Relations,
                                         (Principal Financial Officer)




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