UPDATE 1-Occidental to sell carbon dioxide removal credits to TD Bank

(Adds background and details on the deal in paragraphs 2-6)

Nov 1 (Reuters) - Occidental Petroleum said on Wednesday it would sell 27,500 metric tons of direct air capture (DAC) carbon dioxide removal credits to TD Bank over four years.

The credit purchase represents one of the largest DAC credit deals by a financial institution, the companies said, and TD plans to some of the credits to offset its own operational emissions.

TD will buy the credits from Occidental's carbon capture, utilization and sequestration unit 1PointFive's STRATOS, a DAC plant under construction in Texas.

The U.S. oil and gas producer is aiming to build a profitable business from providing services and technologies that pull CO2 out of the air and bury it underground to advance the climate goals of governments and businesses.

While carbon capture is applied to emissions produced at industrial facilities, DAC actively removes CO2 from the air.

(Reporting by Arunima Kumar in Bengaluru; Editing by Savio D'Souza and Devika Syamnath)