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 six months ended - April 30, 1998

                                       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 June 12, 1998
         -------------------                      ----------------------------

        Common Stock - No Par                               6,844,465



<PAGE>


                       STARTECH ENVIRONMENTAL CORPORATION

                                      INDEX

                                                                        PAGE NO.
                                                                        --------

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

Item 1.   Financial Statements

             Balance Sheet - April 30, 1998
             and October 31, 1997                                            3

             Statement of Operations for the quarters ended
             April 30, 1998 and 1997                                         4

             Statement of Cash Flows for the quarters ended
             April 30, 1998 and 1997                                         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                        8
             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
                             APRIL 30, 1998 and 1997

ASSETS                                                  1998            1997
Current Assets:
         Cash and cash equivalents                  $   452,419     $ 1,288,634
         Accounts receivable                             37,000
         Inventory                                      100,000
         Other current assets                            81,191          32,661
                                                    -----------     -----------

         Total Current Assets                           670,610       1,321,295
                                                    -----------     -----------

Fixed assets:
         Equipment                                       13,425
         Accumulated depreciation                         1,119
                                                    -----------     -----------
         Fixed assets - net                              12,306
                                                    -----------     -----------

Other Assets                                             48,497         100,000
                                                    -----------     -----------

         Total assets                               $   731,413       1,421,295
                                                    ===========     ===========


LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
         Accounts payable                           $    95,024     $     9,210
         Investor deposits                                              700,102
         Notes payable - short term                     100,000         100,000
         Other accrued expenses                          25,750          41,762
                                                    -----------     -----------

         Total Current Liabilities                  $   220,774     $   857,074
                                                    ===========     ===========

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:
         6,844,465 at April 30, 1998 and
         6,859,256 at April 30, 1997                  2,598,606       1,627,262

         Additional paid-in capital                         300             300

         Accumulated deficit                         (2,088,268)     (1,063,341)
                                                    -----------     -----------

         Total Stockholders' equity                     510,638         564,221
                                                    -----------     -----------

Total liabilities and stockholder's equity          $   731,413     $ 1,421,295
                                                    ===========     ===========



                       See notes to financial statements.

                                        3

<PAGE>
<TABLE>
<CAPTION>


                                        STARTECH ENVIRONMENTAL CORPORATION
                                              STATEMENT OF OPERATIONS


                                               Quarter Ended      Quarter Ended     Six Months Ended   Six Months Ended
                                               April 30, 1998     April 30, 1997     April 30, 1998     April 30, 1997
                                               --------------     --------------     --------------     --------------

<S>                                             <C>                <C>                <C>                <C>        
Revenue                                         $    37,000        $    10,000        $    37,000        $    10,000

Operating expenses
         Selling expense                            105,884             16,688            120,839             57,136
         General and administrative expense         259,709            176,162            429,420            317,124
                                                -----------        -----------        -----------        -----------

         Total operating expense                    365,593            192,850            550,259            374,260
                                                -----------        -----------        -----------        -----------

Loss from operations                               (328,593)          (182,849)          (513,259)          (364,260)
                                                -----------        -----------        -----------        -----------

Other income (expense):
         Interest income                              5,716              8,118             15,340             13,160
         Interest expense                            (3,000)            (2,250)            (5,250)            (4,500)
                                                -----------        -----------        -----------        -----------

         Total other income (expense)                 2,716              5,868             10,090              8,660
                                                -----------        -----------        -----------        -----------

Income tax expense                                                                                               550
                                                -----------        -----------        -----------        -----------

Net loss                                        ($  325,877)       ($  176,982)       ($  503,169)       ($  356,150)
                                                ===========        ===========        ===========        ===========

Net loss per share                              ($     0.05)       ($     0.03)       ($     0.07)       ($     0.06)
                                                ===========        ===========        ===========        ===========

Weighted average common
shares outstanding                                6,844,465          6,859,256          6,933,759          6,354,815
                                                ===========        ===========        ===========        ===========





                                         See notes to financial statement.

                                                         4
</TABLE>

<PAGE>
<TABLE>
<CAPTION>



                                            STARTECH ENVIRONMENTAL CORPORATION
                                                  STATEMENT OF CASH FLOWS


                                                         Quarter Ended     Quarter Ended    Six Months Ended  Six Months Ended
                                                         April 30, 1998    April 30, 1997    April 30, 1998    April 30, 1997
                                                         --------------    --------------    --------------    --------------
<S>                                                       <C>               <C>               <C>               <C>         
Cash flows from operating activities:
Net loss                                                  ($  325,877)      ($  176,982)      ($  503,169)      ($  356,150)
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation                                                    1,119                 0             1,119                 0
(Increase) decrease in accounts receivable                    (37,000)                0           (37,000)                0
(Increase) decrease in other current assets:                   (9,858)          (16,525)          (15,858)          (21,810)
Increase (decrease) in current liabilities:
Accounts payable                                               (1,295)          (30,726)           27,857           (18,195)
Accrued expenses                                                2,618             8,250             4,855            10,500
                                                          -----------       -----------       -----------       -----------

Net cash used in operating activities                        (367,703)         (215,983)         (522,196)         (385,655)
                                                          -----------       -----------       -----------       -----------

Cash flows from investing activities
Purchase of equipment                                         (13,425)                0           (13,425)                0
                                                          -----------       -----------       -----------       -----------
Net cash used by investing activities                         (13,425)                0           (13,425)                0
                                                          -----------       -----------       -----------       -----------

Cash flows from financing activities:
Subscriptions to common stock                                       0          (258,273)                0           420,102
Proceeds from issuances of common stock net                         0           973,428                 0           973,428
                                                          -----------       -----------       -----------       -----------
Net cash provided from financing activities                         0           715,155                 0         1,393,530
                                                          -----------       -----------       -----------       -----------

Net Increase (decrease) in cash and cash equivalents         (381,128)          499,172          (535,621)        1,007,876

Cash and cash equivalents at beginning of period              833,547           789,462           988,040           280,759
                                                          -----------       -----------       -----------       -----------

Cash and cash equivalents at end of period                $   452,419       $ 1,288,634       $   452,419       $ 1,288,634
                                                          ===========       ===========       ===========       ===========




Supplemental disclosure of cash flow information:

Cash paid during the period for interest                  $         0       $         0       $         0       $         0
                                                          ===========       ===========       ===========       ===========
Cash paid during the period for income taxes              $       303       $         0       $     1,792       $         0
                                                          ===========       ===========       ===========       ===========
Issuance of common stock for vendor advance               $         0       $   100,000       $         0       $   100,000
                                                          ===========       ===========       ===========       ===========


                                             See note to financial statements

                                                             5
</TABLE>

<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 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 loss for the period ended April 30,
1998.

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,  1997  which  are  included  in the
Company's  annual report on form 10-K. The results of operations for the quarter
ended April 30, 1998 do not  necessarily  indicate the results  expected for the
full year.


Note 2.  Equity Transactions

During the quarter ended April 30, 1998,  there were a total of 23,544 shares of
S-8 stock issued to vendors for services rendered.


                                        6

<PAGE>



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


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

1998 vs 1997
------------

In 1998 the Company earned $37,000 in revenue for professional services. In 1997
the Company  earned  $10,000 in revenue  for  professional  services.  Operating
expenses  were  $365,593 in the quarter  ended April 30, 1998  ($550,259 for six
months)  compared with $192,850 in the quarter and $374,260 for the six 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 since 1991. During fiscal 1995, the Registrant entered
into negotiations with Startech Incorporated which 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 or outside  investors for its operating  capital.  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 and the
sales backlog.


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

                                        7

<PAGE>


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 it's 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 consumate the reverse  acquisition,  that occured 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 and will  vigorously  contest the matter.  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.


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.




                                        8

<PAGE>




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.

               Exhibit 10.6   Private Placement Memorandum dated March 17, 1997.


          (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:  June 15, 1998                    By: /s/ John D. Watts
       -------------                       -------------------------------------
                                           John D. Watts
                                           Vice President, Chief Finance Officer

                                       10