A $2-million expansion project at New Ulm’s August Schell Brewery got underway Monday. Schell’s Brewery Spokesperson Kyle Marti says that work includes the expansion of the brewhouse, building onto the bottlehouse by filling in an alley, new offices for brewmasters and new labs for scientists. He says that plans to build new space into the hillside next to the brewery’s main building have been delayed for now due to higher-than-expected costs. That work will likely take place next year. Phase 2 of the current expansion work is scheduled to begin in September as well, and will involve the installation of a new canning machine as well as an energy recovery system to capture the steam generated by the brewing process.