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 quarterly period ended - January 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 March 10, 1999
         -------------------                 -----------------------------

        Common Stock - No Par                          6,845,965


<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION

                                      INDEX

                                                                        PAGE NO.
                                                                        --------

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

Item 1.   Financial Statements

             Balance Sheet - January 31, 1999
             and 1998                                                      3

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

             Statement of Cash Flows for the quarters ended
             January 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                                    9
             Item 2.  Changes in Securities                                9
             Item 3.  Defaults Upon Senior Securities                      9
             Item 4.  Submission of Matters to a Vote of
                        Security Holders                                   9
             Item 5.  Other Information                                    10
             Item 6.  Exhibits and Reports on Form 8-K                     10

SIGNATURE                                                                  10
---------                                                                



                                       2
<PAGE>



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

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.


                       STARTECH ENVIRONMENTAL CORPORATION
                                  BALANCE SHEET


                                                     January 31,    January 31,
ASSETS                                                   1999           1998
                                                     -----------    -----------
Current Assets:
         Cash and cash equivalents                   $   539,328    $   833,547
         Accounts Receivable                           1,063,438              0
         Inventory                                       330,385        100,000
         Other current assets                             22,869         71,333
                                                     -----------    -----------

                  Total Current Assets                 1,956,020      1,004,880

         Fixed Assets-Net                                 18,346              0

         Other Assets                                    136,200         48,497
                                                     -----------    -----------
                                                     $ 2,110,566    $ 1,053,377
                                                     ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
         Accounts payable                            $ 1,235,329    $    93,730
         Notes payable - short term                      100,000        100,000
         Other accrued expenses                          109,174         23,132
                                                     -----------    -----------

                  Total Current Liabilities            1,444,503        216,862

Stockholders' (deficit) equity:
         Preferred stock, no par value
         10,000,000 shares authorized,
         no shares issued or outstanding

         Common stock, no par value,
         800,000,000 shares authorized;
         shares issued and outstanding:
         6,845,965 at January 31, 1999 and
         7,013,552 at January 31, 1998                 2,708,524      2,598,606
         Additional paid-in capital                          300            300
         Accumulated deficit Net Income (loss)        (2,042,761)    (1,762,391)
                                                     -----------    -----------

                Total Stockholders' (deficit) equity     666,063        836,515

                                                     $ 2,110,566    $ 1,053,377
                                                     ===========    ===========


                        See notes to financial statements

                                       3
<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION
                             STATEMENT OF OPERATIONS


                                                   Quarter Ended   Quarter Ended
                                                    January 31,     January 31,
                                                        1999            1998
                                                        ----            ----

Revenue                                             $ 1,048,246     $         0

Cost of Sales                                           785,569               0
                                                    -----------     -----------

Gross Profit                                            262,677               0

Operating Expenses
         Selling expense                                 39,585          14,955
         General and administrative expense             234,408         169,711
                                                    -----------     -----------

Total Operating Expense                                 273,993         184,666

Gain(Loss) from Operations                              (11,316)       (184,666)


Other income (expense):
         Interest income                                 16,955           9,624
         Interest expense                                     0          (2,250)
                                                    -----------     -----------

         Total other income (expense)                    16,955           7,374

 Income tax expense                                         250               0
                                                    -----------     -----------

Net Income(Loss)                                    $     5,389     ($  177,292)
                                                    ===========     ===========


Net Gain(Loss) per share                            $      0.00     $     (0.03)
                                                                    ===========

Weighted average common
shares outstanding                                    6,857,196       7,013,552
                                                    ===========     ===========



                        See notes to financial statements

                                       4
<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION
                             STATEMENT OF CASH FLOWS


                                                          Quarter      Quarter 
                                                           Ended        Ended
                                                        January 31,  January 31,
                                                            1999         1998
                                                            ----         ----

Cash flows from operating activities:
Net Income (Loss)                                        $   5,389    ($177,292)
Depreciation                                                 1,226            0
(Increase) decrease in Accts. Rec'v                       (170,965)           0
(Increase) decrease in Inventory                           322,070            0
(Increase)  decrease in other current assets               (21,503)      (6,000)
Increase(Decrease) in Current Liabilities:
                Accounts payable                           200,556       26,562
                Accrued expenses                            80,174        2,237
                                                         ---------    ---------


Net cash used in operating activities                      416,947     (154,493)

Cash flows from investing activities:
Patents                                                     (3,000)           0
Stock Offering                                             (31,086)           0
                                                         ---------    ---------

Net cash used by Investing activities                      (34,086)           0

Net increase (decrease) in cash                          $ 382,861    $(154,493)

Cash at beginning of period                              $ 156,467    $ 988,040

Cash and cash equivalents at end of period               $ 539,328    $ 833,547

Supplemental disclosure of cash flow information:
Cash paid during the period for interest                 $       0    $       0
                                                         =========    =========

Cash paid during the period for income taxes             $     250    $   1,489
                                                         =========    =========


                        See note to financial statements

                                       5
<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION
                          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 loss by the weighted
average  number of common  shares  outstanding  during the period.  Common share
equivalents,  which  consist of stock  which 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 ending
January 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 for the period ended October 31, 1998. The
results of operations for the quarter ended January 31, 1999 are not necessarily
indicative of the results to be expected for the full year.



                                       6

<PAGE>


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

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

For the first three months of 1999 the company generated $ 1,048,246 in revenues
for professional services,  consulting and customer system design as compared to
$ 0 for the same period last year.  Operating  expenses of $273,993 consisted of
outlays for outside consulting services, selling,  demonstration and general and
administrative purposes compared to $184,666 in the prior period. Net income was
a positive $5,389 for the first three months of 1999 as compared with a net loss
of $177,292 for the same period last year.

The Registrant was  incorporated  under the laws of the State of Colorado in May
1991. During fiscal 1996, the Registrant entered into negotiations with Startech
Corporation  ("Startech")  which  culminated in the  acquisition  of Startech on
November 17, 1995.


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

Liquidity has been provided  primarily by fees earned from its Alliance Partner,
Burns & Roe,  stock sales,  and  consulting  fees.  The  Registrant  is and will
continue to be dependent upon the deposits from the sale of equipment, equipment
sales,  the sale of stock,  loans and/or  capital  contributions  from  majority
shareholders  or  outside   investors.   The   Registrant's   capital   resource
requirements  for future  periods will increase due to increased  manufacturing,
marketing and administrative demands. These needs are anticipated to be met from
operations of the Registrant's normal business activity.


Background
----------

The Registrant's  activities  during the four fiscal years,  November 1, 1992 to
October  31,  1995,  consisted  primarily  of  investigating  possible  business
opportunities.  On November 17, 1995, the Company  completed the  acquisition of
all of the  issued  and  outstanding  shares  of the  common  stock of  Startech
Incorporated  ("Startech"),  a corporation  incorporated and organized under the
laws of the State of Connecticut. Startech designs and manufactures machinery to
recover,   recycle,  reduce  and  remediate  hazardous  and  nonhazardous  waste
materials.

On November 18, 1995, the Board of Directors of the Company unanimously approved
a change of  business  purpose of the Company  from one  seeking an  acquisition
candidate to one engaged in the business of recovering, recycling, reduction and
remediation of hazardous and nonhazardous waste materials. From that time to the
time of this filing, the Company has maintained only this focus.


                                       7
<PAGE>


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.

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.




                                       8
<PAGE>


                           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 proceedings are in
their preliminary stages. The company does not believe there is any merit to the
claim and will  vigorously  contest the matter.  The company will file a counter
claim against Mr. Easton.

The  company  is a  defendant  in  litigation  brought in the  Ontario  Court of
Justice,  Ontario, Canada and was served notification of the complaint in August
1997.  The  complaint  is a result of a third  party  action  against one of the
Company's  shareholders.  The Company does not believe there is any merit to the
claim and will vigorously contest the matter.

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 and 10K dated
October 31, 1998.

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 quarter of the fiscal year covered by
this report to a vote of security holders.

                                       9
<PAGE>


ITEM 5. OTHER INFORMATION.

None.


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

None were filed for the quarter ended January 31, 1999.





                                    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:  March 10, 1999                  By:  /S/ John D. Watts
       --------------                      -------------------------------------
                                           John D. Watts
                                           Vice President, Chief Finance Officer




                                       10