Yes, ethanol has less stored energy per gallon than gasoline same as gasoline has less stored energy than diesel per gallon
Ethanol is made from "biomass", gasoline is made from crude oil
Cheaper is a relative term because production will be different
But Dirtman's point is a good one, for lower Octane gasoline(under 87) adding ethanol is the cheapest way to get a usable octane of 87, or even higher for higher compression engines
And ethanol is a renewable fuel if you HAVE TO run an ICE, gasoline is NOT, so eventually gasoline prices will be beyond affordable, lol, so ethanol WILL BE cheaper
But not in our lifetimes