JAM Studios has been developing Galaxy Engine for the past year and is now releasing it as open source under the new BSD license! Galaxy Engine is a complete game development package for Mac, iPhone, and iPad. Galaxy Engine is programmed in Cocoa / Objective-C and uses the OpenGL, and OpenAL libraries for powerful graphics and sound. Galaxy Engine provides common classes to OpenGL development such as Models and Textures. It also includes critical tools and their source for game development such as: Level Editor, Terrain Editor, Model Viewer, Particle Editor, and Shader IDE. It also includes features such as: vertex animation, advanced lighting, dynamic shadows, vertex and pixel shaders, normal mapping, parallax mapping, and massive outdoor environments.
You can find the project on Google Code here.