The EU-funded CoCoRo project studies heterogeneous swarms of AUVs used for the purposes of underwater monitoring and search. The CoCoRo underwater swarm system will combine bio-inspired motion principles with biologically-derived collective cognition mechanisms to provide a novel robotic system that is scalable, reliable and flexible with respect its behavioural potential. We will investigate and develop swarm-level emergent self-awareness, taking biological inspiration from fish, honeybees, the immune system and neurons. Low-level, local information processing will give rise to collective-level memory and cognition. CoCoRo will develop a novel bio-inspired operating system whose default behaviour will be to provide AUV shoaling functionality and the maintenance of swarm coherence. Collective discrimination of environmental properties will be processed on an individualor on a collective-level given the cognitive capabilities of the AUVs. We will investigate collective self-recognition through experiments inspired by ethology and psychology, allowing for the quantification of collective cognition.