The State Government showcased WA as a contender to headquarter the Commonwealth's proposed Australian Space Agency in the Wheatbelt today.

European Space Agency director general Professor Jan Woerner joined Science Minister Dave Kelly in New Norcia, which is home to one of only three deep space ground stations in the world.

The visit coincides with a federal review into Australia's space capacity.

Professor Woerner advises the European Union on space matters and believes WA is well placed to contribute to the sector.

"There is no limit, there is no border in using space or providing something for space," Professor Woerner said.

"Western Australia with its specialist culture, with its special industrial landscapes, [and] from my perspective the whole of Australia, is very well equipped to be part of this global activity."

The McGowan Government is keen to secure the agency in WA because of the project's potential to create jobs and diversify the state's economy.

Mr Kelly said WA had a long history of involvement in the space industry, as well as existing relationships with a number of international space agencies such as Japan and Europe.

"We've got the scientists, we've got the experience, we've certainly got the geography," Mr Kelly said.

"We are putting our case very strongly to the Federal Government that the new space agency should be here in Western Australia."

Mr Kelly said the space industry would help diversify the state's economy.

"We as a new government are looking to new industries to help transition the West Australian economy away from relying solely on mining," he said.

"A $400 billion international industry — an industry that is growing — we want to make sure West Australia is part of it."

Midwest wants a piece of the pie

Federal Member for Durack Melissa Price wants the space agency to be placed Geraldton, which is located four hours north of Perth in the State's Midwest.

The region is already home to the Harold Holt Naval Communications Station, Universal Space Network Ground Station, and the Square Kilometre Array Project in the Murchison.

The scope and nature of the work to be undertaken by the space agency is yet to be determined, but Ms Price said the Midwest had demonstrated its capacity to support the industry.

"Any space agency the government is looking at creating, in my opinion, should seriously consider using the industry experts that are already available in this region," Ms Price said.

"You would be hard pressed to find any region in Australia with as high a concentration of satellite ground stations, with as much expertise in the field, as is found in the Midwest."

Ms Price said she was lobbying Canberra to ensure WA is in the mix to host the project.