A global methane-tracking satellite will be sent into orbit in New Zealand's first state-funded space mission.

The Government will put $26 million into a joint mission with the United States' Environmental Defense Fund to launch and operate the organisation's state-of-the-art data-gathering MethaneSAT satellite, Research, Science and Innovation Minister Megan Woods announced on Wednesday.

The satellite is scheduled to be launched in 2022, with a mission control to be based out of New Zealand, although where the base will be has yet to be decided.

Also unknown is whether it'll be launched from New Zealand.

"This investment will build important capability in our rapidly growing space sector and put New Zealand at the global frontier of science and innovation by building partnerships with world-leading atmospheric scientists," Woods said.

She said while the satellite was designed to collect emissions data from the oil and gas industry the possibility of using for agriculture in the future would be considered.

US-owned Rocket Lab has been launching commercial payloads into orbit from its private base in the Hawke's Bay Mahia Peninsula since last year, although it's not yet clear if the company will play a role in the operation.

While the Government quietly set up a New Zealand Space Agency in 2016 within the Ministry of Business Innovation and Development, its duties have been in policy and supporting business development, rather than running missions.