UPDATE 1-BioFuel Energy Corp says ethanol plants delayed

(Adds quotes details on costs, capacity)

LOS ANGELES, Jan 17 (Reuters) - BioFuel Energy Corp (BIOF.O) said on Thursday the start-up of its first two ethanol plants would be delayed by about 90 days due to difficulties procuring building materials and skilled labor.

In a statement, the Denver company said commercial production at the plants is expected before the end of the second quarter. It stood by its previous estimate calling for total plant construction costs of $1.35 to $1.40 per gallon.

BioFuel Energy said that, as of Dec. 31, it spent $258 million on construction of the plants in Wood River, Nebraska and Fairmont, Minnesota. A further $55 million to $65 million is needed to complete the projects, it added.

"Construction at both Wood River and Fairmont have experienced and continue to face challenges," President and Chief Executive Scott Pearce said in a statement. "These have largely been due to the still very strong industrial construction market and the resulting competition for personnel and material."

Both plants are expected to have a capacity of 115 million gallons a year of fuel grade ethanol, the company said. Cargill Inc, which has an equity interest in BioFuel, will supply the corn required by the plants.

BioFuel said it remained open to acquisition opportunities.

BioFuel shares closed at $6.66 on Nasdaq, up 6 cents on the day. (Reporting by Nichola Groom; Editing by Carol Bishopric; Editing by Andre Grenon)