Italy can become a central hub for the networks carrying electricity and data between Europe, Africa, and the Middle East. Beneath the sea, thanks to cutting edge technologies, connections that were once extremely ambitious are more feasible than ever before. In addition, on land, the country’s geographic position and the expertise available in Italian companies offer advantages that can be put to use, argue Oliviero Baccelli and Stefano Riela in a study by the Blue Economy Monitor (an SDA Bocconi/Banca Intesa initiative).
However, a distinction must be made between the different opportunities offered by the underwater economy. While power and digital networks rely on proven technologies and attract investment, projects to generate energy from wave motion are currently far from commercial viability. Seabed mining in Italian waters also offers limited prospects. For businesses and public-sector operators, deciding where to concentrate resources and expertise means recognizing these differences.
Geography alone is not enough
The study examines a sector in which technological innovation, the energy transition, and national security are becoming increasingly intertwined. Among the transformations that are already underway, we can list robots and autonomous vehicles that make it possible to operate at greater depths; sensors and digital systems that improve infrastructure monitoring and maintenance; and rapidly growing demand for connectivity. Italy has specialized companies and a favorable geographic position, but geography alone does not ensure that investment and benefits will remain in this country.
The questions addressed in the study focus precisely on this transition:
- Which infrastructure offers the best prospects for development in the Mediterranean?
- How mature are the technologies, and how commercially viable are the projects?
- Which public and industrial policy choices can turn Italian expertise into a lasting advantage?
Six types of infrastructure to watch
Using a qualitative and quantitative approach that combines economic, technological, and geopolitical analysis, the study assesses six categories of infrastructure in terms of technological maturity, commercial maturity, and opportunities in waters under Italian jurisdiction. Moreover, discussions with industry operators contributed to the recommendations on companies’ operating conditions.
- In power interconnections , the scale of the projects makes the transformation tangible. The Tyrrhenian Link project is designed to connect Campania, Sicily, and Sardinia through 950 kilometers of links, with a total investment of €3.7 billion. For the interconnection between Italy and Tunisia, known as ELMED, the report documents €307 million in European funding, confirming that Italy’s central position can be leveraged through investments in Europe’s interest. ELMED also represents an innovation in the public support model because, for the first time, funding from the Connecting Europe Facility program has been allocated to infrastructure jointly developed by an EU member state and a country outside the European Union.
- On the digital front , Genoa, Bari, Catania, and Mazara del Vallo host international cable landing points that place Italy along global data routes. The benefits extend to data centers and digital services, which gain from proximity to connection points, as well as to the port activities needed to install and maintain cables. In addition, Italy’s advantage rests on its manufacturing and operational capabilities. Prysmian’s cable manufacturing expertise is complemented by Saipem’s subsea engineering capabilities, Fincantieri’s shipbuilding and underwater technologies, and Sparkle’s telecommunications expertise. The fleet of cable-laying vessels flying the Italian flag is an essential component of this supply chain, whose organizational requirements affect competitiveness.
- The picture changes for wave energy . The WaveSax project in Civitavecchia and ISWEC in Pantelleria have highlighted economic challenges and difficulties in scaling up. The findings indicate that, in the Italian context, there are no commercial wave-energy installations permanently connected to the grid, and that any projects in this area depend on subsidies or research funding. This assessment concerns these specific technologies and should not be extended to offshore wind, which is more promising.
- The local potential for seabed mining is also limited. The Mediterranean seabed offers fewer prospects than major oceanic mining areas, even before factoring in operational complexities and environmental constraints. The opportunity for Italian companies is to focus on supplying vessels, robotics, and engineering services for projects abroad, including through potential partnerships with US operators in the Pacific.
- Seaweed farming and underwater bio-farming offer interesting possibilities, but in Italy they remain largely experimental. The Nemo’s Garden project in Liguria, however, has demonstrated the feasibility of growing plants in submerged biospheres, using fewer pesticides and freshwater. Turning these experiments into commercial activities will require overcoming high installation and maintenance costs, hurdles in scaling up, and uncertainty surrounding permits.
- Technologies for capturing CO ₂ from industrial facilities and storing it in geological formations beneath the seabed are more mature. The study identifies the Ravenna project as an opportunity to reduce environmental discharges from sectors such as cement and steel, where emissions are difficult to eliminate entirely through efficiency and renewable energy. The project plans to use depleted gas fields in the Adriatic, but profitability is still an open question: capture, transportation, and storage need to develop in a coordinated way, ensuring that companies have access to infrastructure and that investors have sufficient demand.
What needs to be done
In the coming years, Italian industry will need to distinguish carefully between technical feasibility and the ability to generate economic returns. In power and digital cables, there are established markets and expertise on which to build investment; for technologies that are still experimental, factors such as costs, scalability, and dependence on public support must be assessed. Additional opportunities lie in the services required throughout the infrastructure life cycle, from installation to maintenance and monitoring.
Public authorities need to streamline procedures (including crew-related requirements) to ensure that specialized vessels keep sailing under the Italian flag, and standardize permitting documentation for cable installation and repair. Developing dedicated port areas could make operations more efficient and encourage related businesses to establish a local presence. Coordination between energy and digital investments, along with access to European co-financing, could further expand these benefits.
Oliviero Baccelli , Stefano Riela , Scenari e prospettive per le infrastrutture sottomarine: quale ruolo per l’Italia nel Mediterraneo (in Italian), Blue Economy Monitor Report.
