A Letter of Intent has been signed by MBIE and the German Aerospace Centre this week, and it could have big lift offs for NZ's space industry.

It's one small step for New Zealand, one giant leap for space research – New Zealand and German space agencies have announced they will work together.

A Letter of Intent was signed by the Ministry of Business, Innovation and Employment (MBIE) and the German Aerospace Centre (DLR) at the 69th International Astronautical Congress in Bremen this week.

MBIE general manager of science innovation and international Dr Peter Crabtree, who leads the New Zealand Space Agency, said "innovation does not happen in isolation".

"International connection is vital for ensuring that New Zealand is a credible, innovative and responsible participant in the global space economy.

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﻿"Working with a credible, experienced partner like Germany provides the opportunity for both parties to share and gain knowledge and expertise which will enhance the capability of both agencies."

Early this year it was suggested New Zealand was a contender for a proposed satellite base for DLR.

DLR doesn't have a ground station in the South Pacific, and New Zealand sits almost directly opposite to Germany on the earth.

But Crabtree said they were yet to identify specific projects the two parties would work on. ​

They would work together on research, including space systems, satellite technology, rocketry and ground-based infrastructure, he said.

"These areas are of particular interest to New Zealand as we have niche expertise to contribute, they are priority areas for growing capability and have the potential for wider economic applications."

SPIRE GLOBAL This year it was said New Zealand was a contender for a proposed satellite base for the German Aerospace Centre.

Crabtree said the Letter of Intent allowed for a range of joint projects, including research, training opportunities for scientists and visits and exchanges.

It meant New Zealanders could be closely involved in the DLR's work.

New Zealand needed to develop its capabilities to grow its space industry.

"This collaboration is designed as a long-term investment in that development, which in turn will lead to greater economic, social and cultural outcomes."

Germany was a credible and experienced partner, he said.

SUPPLIED A Rocket Lab launch at Mahia in May last year.

University of Auckland head of physics Richard Easther said he was excited about the agreement.

"New Zealand has found itself in this remarkable position of being able to build rockets locally and being able to launch them in to space.

"Part of that challenge for us is no one really saw that coming ... we've really had to develop quite quickly."

The agreement with Germany would give New Zealand access to expertise and talent. "It's about building good connections."

MBIE houses the New Zealand Space Agency, the lead government agency for space policy, regulation and business development.

The Letter of Intent was signed by Crabtree and the chair of DLR's executive board, professor Pascale Ehrenfreund and professor Hans Jorg Dittus.