Differential operators and the loop group via chiral algebras

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Let $G$ be an algebraic group and let $\widetilde{\mathfrak g}$ be the corresponding affine algebra on some level. Consider the induced module $V:=Ind^{\widetilde{\mathfrak g}}_{{\mathfrak g}[[t]](O_{G[[t]]})$, where $O_{G[[t]]}$ is the ring of regular functions on the group $G[[t]]$. In this paper we show that $V$ is naturally a vertex operator algebra, which is "responsible" for D-modules on the loop group $G((t))$. Using the techiques of VOA we show that $V$ is in fact a bimodule over the affine algebra. In addition, we show that $V$ possesses a remarkable property related to its BRST reduction with respect to $\widetilde{\mathfrak g}$. This paper has a considerable intersection with a recent preprint of Gorbunov, Malikov and Schechtman.
Revised version, Section 6 added

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