The refugium can be part of the sump. Most people have part of the sump sectioned off and turned into a refugium. A refugium usually contains sand, live rock rubble and macroalgae. The macroalgae consumes nutrients that would otherwise fuel the growth of nuisance algae in the display tank. The refugium also serves as a place for pods and stuff to reproduce and they can then spread to your main tank and serve as a live food source for the animals in your display tank.
To build a refugium into your sump, you would simply need a couple plexiglass baffles to separate the area where water flows in and equipment is held, the refugium, and the return section where the return pump is located.