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The explosion took place about a minute into the test of the second stage engine, the official said.
Flames shooting out the side of a testing facility before the whole small building was engulfed in flames and the roof blew off.
There are no immediate reports of casualties.
The explosion of the Epsilon S engine at the Japan Aerospace Exploration Agency (JAXA) testing site in northern Japan is a further blow to the country’s space ambitions, following a series of failures earlier this year.
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