The decline of young peoples' interest in science & technology education in western counties is causing concern worldwide. To help change this situation teachers need to take a leadership role in designing innovative approaches for engaging students with science curriculum in schools. Here I report on an action research study to examine science literacy learning opportunities that emerged for my grade 7/8 students through engaging in an innovative project-based learning approach based on literature on learning through video games. The project called The Heat Game is designed to simulate for grade 7/8 students a real-world context for their science and technology work. Teacher and students role-play scientists and engineers working together in a futuristic scenario to learn about heat transfer and design energy efficient housing for their city. This research study uses discourse analysis to analyze online communication between teacher and students through e-mail and blog. Findings demonstrate that the project afforded students the opportunities to increase their science literacy by developing understanding of aspects of the nature of science including: the importance of evidence and repeatability in science, scientists' ways of reporting, and peer review. The implications of the findings for my professional practice and for curriculum design in general are discussed.