Project-AC team is currently working on brand new Half Life 3 project (or Half Life 2: Episode Three if you prefer) in Source Engine. Project-AC is described as a modification for Half Life 2 that is partially based on the motives of the Episode Three or Epistle 3.
As the team claimed, while the plot is partially based on Epistle 3, it does not convey the whole story that was written by Marc Laidlaw.
Project-AC will feature new textures, new models, new shaders, and new game levels. The game will also most likely feature new NPCs and weapons, though this has not been confirmed as of yet.
In order to showcase this fan-made game, the team has released a video showing 8 minutes of gameplay footage from it. Do note that this is early footage, meaning that the final product may look different than it.
Now since Valve will never release Half Life 3 or Half Life 2: Episode Three, it’s awesome witnessing various teams experimenting with it. This project may never be completed – like most ambitious mods or fan-made games – however it’s pretty cool witnessing such projects. At least in my opinion.
It’s worth reminding you that another Half Life 3 project is also under development. This other fan-made HL3 game is called Project Borealis and its team aims to release a tech demo pretty soon.