Professor wants to use required class project for research
There may be course policies or institution policies allowing it at your school, but you should be at least cited/credited/acknowledged in that professor's research. 

I've personally had my research and work used in a professors publications and she has always at least acknowledged me in her publications. 

(My case may differ from yours, in that the research I was involved in was done on a student-employee basis. I'm not sure how that might change the dynamic.)

I would certainly at least send an email so that there is some sort of recoverable proof, asking if your work will be cited/attributed to yourself. Don't fall victim to the old "your reward is the experience" thing. While valid and applicable in some situations, not so when it's your intellectual property.