According to a blog post from the developers (via VGC), Team SCU is building the game on their own engine, rather than copy exact source material from Metroid Prime.
The intention is not wanting to use the 3D elements Retro Studios implemented in the original in a 2D style, but rather making something that works first and foremost from a 2D perspective. So far, fans of the project seem to agree Team SCU is succeeding in that endeavor.
For now, the demo is still available to download on PC for those who would like to see the work for themselves.
This isn’t the first fan project based on a popular Nintendo IP, and the most recent was a PC port of Super Mario 64 upscaling the game to 4K, which was taken down.
Hopefully, it’s not another 15 years until we can play more Prime 2D, but in the meantime, Retro Studio’s development of Metroid Prime 4 should be finished before then. Since development was restarted in 2019, we’ve had no updates as to when we might see more of Retro’s highly anticipated return to Metroid. However, the 35th anniversary of Metroid is quickly arriving later this year, which could mean an update isn’t too far away.