Japan's space agency on Saturday launched a second test model of its new flagship rocket H3, almost one year after the first failed due to engine ignition trouble.

The Japan Aerospace Exploration Agency (JAXA) and primary contractor Mitsubishi Heavy Industries plan for the H3 to replace the two-decade-old H-IIA rocket, hoping that its lower costs and greater payload capacity will help them win launch orders from global clients.

The rocket will fly for roughly two hours and release two micro-satellites and a dummy mass simulating a satellite payload.

The government plans to launch about 20 satellites and probes with H3 rockets by 2030.

A successful launch of the next-generation flagship rocket would follow the historic "pinpoint" moon landing of Japan's SLIM spacecraft, burnishing the country's space credentials.

JAXA will host a press conference later in the day to explain the mission's outcome. (Reuters)