Affine Kac-Moody algebras and semi-infinite flag manifolds

We study representations of affine Kac-Moody algebras from a geometric point of view. It is shown that Wakimoto modules introduced in [18], which are important in conformal field theory, correspond to certain sheaves on a semi-infinite flag manifold with support on its Schhubert cells. This manifold is equipped with a remarkable semi-infinite structure, which is discussed; in particular, the semi-infinite homology of this manifold is computed. The Cousin-Grothendieck resolution of an invertible sheaf on a semi-infinite flag manifold gives a two-sided resolution of an irreducible representation of an affine algebras, consisting of Wakimoto modules. This is just the BRST complex. As a byproduct we compute the homology of an algebra of currents on the real line with values in a nilpotent Lie algebra.