Icelanders voted today in an election that pits environmentalists against big industry backers, a race experts believe may reshape the island nation's ruling coalition and potentially its economic future.
"It will be very close - neck and neck," said political science professor Olafur Hardarson at the University of Iceland.
The election race has been dominated by a single issue - the level of large-scale industrial development.
The long-ruling Independence-Progressive Party coalition wants aluminium giants like Alcoa to keep building smelters fuelled by Iceland's geothermal and hydroelectric power, a trend that has driven rapid economic growth for the past few years.
Main opposition parties the Left Greens and Social Democrats want development halted until the environmental and economic impact of the latest projects becomes clear.
Prime Minister Geir Haarde, whose Independence Party led with 37 per cent in the final poll, expressed confidence after voting in Reykjavik as wind gusted outside.
Social Democrat leader Ingibjorg Solrun Gisladottir - Mr Haarde's main rival - said the election was the most exciting in decades.
"It's important the incumbent government loses today. We need a new, efficient, powerful, preferably left-wing, government in which the Social Democrats would be the central pillar." He said.
Although Independence looked set to take the most seats in the 63-seat parliament, coalition partner the Progressive Party was commanding just 8 per cent in polls.
Since the Progressives plan to leave government if they win less than 10 per cent, Independence may need another partner.
This may force compromises on issues like the smelters and public spending in coalition talks expected to spill into next week or beyond if neither side wins a clear majority.
"We will work with whichever party will agree with us on the issues that burn the most to us," Mr Haarde said, adding that the Social Democrats are his natural second choice.
But experts see a real chance his opponents could gain enough votes to form a majority coalition and push Independence out.